Footnote:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments June 2019 erstellt
Description:
We study how commodity financialization affects information transmission in a commodity futures market. The trading of financial traders injects both information and noise into the futures price. In consequence, price informativeness in the futures market first increases and then decreases with commodity financialization. When the price-informativeness effect is negative, commodity financialization can aggravate the futures price bias. Financialization generally improves market liquidity in the futures market and strengthens the commodity-equity market comovement. Operating profits and producer welfare can move in opposite directions in response to commodity financialization. Our analysis provides important guidance for interpreting related empirical and policy studies.cal and policy studies