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Joakim Westerholm

Joakim Westerholm

MScEcon PhD Swedish Sch. Econ (Finland)
Associate Professor

Rm 409
H69 - Economics and Business Building
The University of Sydney
NSW 2006 Australia

Telephone +61 2 9351 6454
Fax +61 2 9351 6461
joakim.westerholm@sydney.edu.au

Bio

P. Joakim Westerholm's teaching and research interests are in the areas of Asset Pricing: with focus on security market microstructure and behavioral finance topics; Corporate Finance: with focus on CEO and Corporate Insider trading strategies and acquisition decisions.

Joakim's publications include a doctoral dissertation, research articles in Journal of Finance, Review of Finance, Journal of International Financial Markets Institutions and Money, Journal of Trading, Australian Journal of Management, International Review of Finance and the Finnish Journal of Business Economics, and a book section published by L. Stern School of Business at New York University and Elsevier Science. Joakim's research articles in market microstructure and behavioural finance have been accepted for presentation at top Finance conferences such as the Western Finance Association Meeting (WFA), the European Finance Association (EFA) and the Financial Management Association International Meetings in USA and Europe, and have also been presented at specialist conferences in Market Microstructure. Joakim received best paper awards at the Behavioral Finance and Capital Markets Conference, Adelaide, 2011, the Conference on the Theories and Practices of Securities and Financial Markets, Taiwan, 2011, and the award for best paper of 2007 in Australian Journal of Management. He was also awarded the SIRCA Research Excellence Award at the Australian Banking and Finance Conference in 2003 and 2004.

Joakim has a PhD in Finance from the Swedish School of Economics and Business Administration (Hanken), in Helsinki, Finland. Joakim has 9 years industry experience in broking, dealing and funds management.

Newsroom articles

  • To Find Insider Trading, Follow The Kids' Money 09 Apr 2013

    National Public Radio (USA)

    National Public Radio (USA) has reported on research by Joakim Westerholm from the Business School, Henk Berkman at University of Auckland and Paul Koch at the University of Kansas, which suggests that the abnormally high performance of trading accounts of children aged 0 to 10 years might be a sign of insider trading.

  • Study suggests kids make great investors (or their parents are cheating) 09 Apr 2013

    CBC News Canada

    Either children are much better stock pickers than adults, or their parents are using their accounts to hide insider trading, an extensive review of trading data by a team of international researchers, including the Business School's Joakim Westerholm, reports CBC News, Canada.

See all Newsroom items for Joakim Westerholm

Publications

2015

4
Journal Article/s

Pham TP and Westerholm J 2015 Forthcoming 'A survey of research into broker identity and limit order book transparency', Australasian Accounting Business and Finance Journal, vol.9:1

2014

4
Journal Article/s

Berkman H, Koch PD and Westerholm J 2014 'Informed Trading through the Accounts of Children', Journal of Finance, vol.69:1, pp. 363-404 Link

Viljoen T, Westerholm J and Zheng H 2014 'Algorithmic Trading, Liquidity, and Price Discovery: An Intraday Analysis of the SPI 200 Futures', The Financial Review (Special Issue on Computerized and High-Frequency Trading), vol.49:2, pp. 245-70 Link

Leung H, Rose A and Westerholm J 2014 'Systematic Trading Behavior and the Cross-Section of Stock Returns on the OMXH', Review of Finance, vol.18:6, pp. 2325-74 Link

Berkman H, Koch PD and Westerholm J 2014 Forthcoming 'Beware of Children Trading', Journal of Investment Management

2013

4
Journal Article/s

Pham TP and Westerholm J 2013 'An international trend in market design: Endogenous effects of limit order book transparency on volatility, spreads, depth and volume', Journal of International Financial Markets, Institutions & Money, vol.27, pp. 202-23 Link

Westerholm J and Mostafa Ahmed MD 2013 'Price discovery and success factors for individual stock futures', International Journal of Bonds and Derivatives, vol.1:1, pp. 3-18

5
Conference Paper/s

Westerholm J 2013 'High Frequency Trading and Market Volatility: Is There a Fundamental Association', 3rd Auckland Finance Meeting, Auckland University of Technology, New Zealand, 17th December 2013

Frino A, Viljoen T, Westerholm J, Zheng H and Wang GHK 2013 'Are Algorithmic Trades Informed? An Empirical Analysis of Algorithmic Trading around Earnings Announcements (Semifinalist for one of four best paper awards - Market Microstructure category)', Financial Management Association Annual Meeting FMA 2013, Chicago, United States, 19th October 2013

Grant A and Westerholm J 2013 'Reference Price Formation for Packaged Transactions: What Disposition Effect?', 17th Annual European Conference of the Financial Management Association International FMA 2013, Luxembourg, 14th June 2013

Leung H, Rose A and Westerholm J 2013 'Modulated Investment Strategies During the Credit Crisis of 2007/2008 and the Cross-Section of Stock Returns: Fear or Greed?', 17th Annual European Conference of the Financial Management Association International FMA 2013, Luxembourg, 14th June 2013

Frino A, Viljoen T, Wang GHK, Westerholm J and Zheng H 2013 'Are Algorithmic Trades Informed? An Empirical Analysis of Algorithmic Trading Around Earnings Announcements (Semifinalist for the CFA Institute Research Award)', Financial Management Association Asia Conference 2013, Shanghai, China, 19th April 2013

2012

6
Conference Proceeding/s

Leung H, Westerholm J and Rose A 2012 'Informational Effect and Market Quality Impact of Crossed Trades and Fleeting Orders on the Australian Securities Exchange', Proceedings of the World Finance & Banking Symposium - "Asian Finance & Banking", Shanghai, China, 18th December 2012

2011

4
Journal Article/s

Ben Sita B and Westerholm J 2011 'The Role of Trading Intensity Estimating the Implicit Bid-Ask Spread and Determining Transitory Effects', International Review of Financial Analysis, vol.20:5, pp. 306-10

Westerholm J and Leung H 2011 'Execution Costs of Market Designs Worldwide during the Global Credit Crisis', The Journal of Trading, vol.6:4, pp. 60-81 Link

5
Conference Paper/s

Westerholm J and Leung H 2011 'Execution Costs of Market Designs Worldwide During the Global Credit Crisis (Awarded Best Research Paper)', 19th Conference on the Theories and Practices of Securities and Financial Markets 2011, Kaohsiung, Taiwan, 10th December 2011

Leung H, Rose A and Westerholm J 2011 'Systematic Trading Behaviour and Cross-Sectional Stock Returns on the OMXH (Winner of the best paper presented by an established researcher prize)', Behavioral Finance and Capital Markets Conference, Adelaide, Australia, 16th September 2011

Westerholm J, Leung H and Rose A 2011 'Does systematic trading behaviour in different investor categories impact upon future stock returns? A study of investors in the Finnish market', Financial Management Association FMA European Conference 2011, Porto, Portugal, 10th June 2011

Berkman H, Koch P and Westerholm J 2011 'Passing on Family Values: Informed Trading through Accounts of Children', Financial Management Association FMA Asian Conference 2011, Queenstown, New Zealand, 8th April 2011

2010

4
Journal Article/s

Berglund T and Westerholm J 2010 'Foreign Investors’ Reaction to Lower Profitability – The Role of Information Asymmetry', International Review of Finance, vol.10:4, pp. 455-483

5
Conference Paper/s

Faff R, Kalev P, Phan MH and Westerholm J 2010 'Market Wide Ownership Breadth and Stock Returns: New Insights from Finland', 23rd Australasian Finance & Banking Conference 2010, Sydney, Australia, 17th December 2010

Berkman H, Koch P and Westerholm J 2010 'Divergent Investment Skills across Investor Types Before and After Earnings Announcements', Financial Management Association FMA Annual Meeting 2010, New York , United States, 23rd October 2010

Westerholm J, Rose A and Leung H 2010 'Market Quality Externalities from Crossing and Internalization in a Limit Order Book market (ASX)', 8th INFINITI Conference on International Finance - "International Credit and Financial Market Integration: After the Storm?", Dublin, Ireland, 15th June 2010

Pham TPhuong, Swan P and Westerholm J 2010 'The Public Limit Order Book of the Korea Stock Exchange: Market capitalization dependent endogenous effects on spreads, volatility and volume', 4th Annual Microstructure Meeting, University of Sydney, Australia, 26th March 2010

6
Conference Proceeding/s

Pham TPhuong, Swan P and Westerholm J 2010 'The Public Limit Order Book of the Korean Stock Exchange: Market capitalization dependent endogenous effects on spreads, volatility and volume', Proceedings of the Midwest Finance Association Annual Meeting 2010, Las Vegas, United States, 27th February 2010

2009

4
Journal Article/s

Westerholm J 2009 'Do uninformed crossed and internalized trades tap into unexpressed liquidity? The case of Nokia', Accounting and Finance, vol.49:2, pp. 407-24

5
Conference Paper/s

Pham TPhuong, Swan PL and Westerholm J 2009 'The Public Limit Order Book of the Korea Exchange: Market Capitalization Dependent Endogenous Effects on Spreads, Volatility and Volume', 22nd Australasian Finance and Banking Conference 2009, Sydney, Australia, 18th December 2009

Westerholm J and Pham TPhuong 2009 'Contrasting the equity market transparency reforms in Korea and Japan: Endogenous effects on volatility, spreads, volume and price discovery', International Conference on Policy Modeling (EcoMod2009), Ottawa, Canada, 26th June 2009

2008

2
Book Section/s

Westerholm J 2008 'Dealing and Market Making' in Trade Execution, Arbitrage and Dealing in Australia, ed. Frino A & Segara R, Pearson Education, Sydney, Australia, pp. 99-122

4
Journal Article/s

Do V, Tan MG-S and Westerholm J 2008 'Correlated Trading in Concentrated Market', Journal of International Finance and Economics, vol.8:4, pp. 148-163

Jarnecic E, Segara R, Segara L and Westerholm J 2008 'The Scholarly Output of Universities and Academics in the Asia-Pacific Region Who Publish in Major Finance Journals: 2000-2007', Australasian Accounting Business and Finance Journal, vol.2:3, pp. 26-56

5
Conference Paper/s

Pham TPhuong, Swan PL and Westerholm J 2008 'Contrasting the equity market transparency reforms in Korea and Japan: Endogeous effects on volatility, spreads and depth', The Third Annual Conference on Asia-Pacific Financial Markets CAFM 2008, Seoul, Korea, (South) Republic of, 6th December 2008

Do V, Tan MG-S and Westerholm J 2008 'Corelated Trading in Concentrated Market', International Academy of Business and Economics (IABE-2008 Las Vegas) Annual Conference, United States, 22nd October 2008

6
Conference Proceeding/s

Kato K, Fabre J and Westerholm J 2008 'Are Poison Pills Poison for Shareholders?', Asian Finance Association - Nippon Finance Association Conference AsianFA-NFA 2008, Yokohama, Japan, 9th July 2008

2007

4
Journal Article/s

Cristea M, Westerholm J and Baurciulu A 2007 'World Pension Systems- Comparison between Europe and Australia', Annals of the University of Craiova (Economics Science Series), vol.35:1, pp. 91-102

Westerholm J 2007 'Industry Clustering in Nordic Initial Public Offering Markets', International Review of Finance, vol.6:1-2, pp. 25-41

Keller A and Westerholm J 2007 'Benchmarking a transition economy capital market', The Australasian Accounting Business and Finance Journal, vol.1:3, pp. 49-60

Comerton-Forde C, O'Brien M and Westerholm J 2007 'An Empirical Analysis of Strategic Behaviour Models', Australian Journal of Management, vol.32:2, pp. 181-203

5
Conference Paper/s

Berglund TP, Farooq O and Westerholm J 2007 'Do Analysts Revise Their Recommendations To Increase Trading By Clients', FMA European Conference, Barcelona, Spain, 1st January 2007-31st December 2007

Westerholm J and Swan PL 2007 'Market quality after ASX moves towards a more anonymous equity market', 3rd Annual Central Bank Workshop on the Microstructure of Financial Markets-hosted by the Magyar Nemzeti Bank (MNB, the central bank of Hungary), Budapest, Hungary, 15th September 2007

6
Conference Proceeding/s

Westerholm J and Cohn Urbach B 2007 'Trading Frequency, Investor Returns & Behavioral Biases', Annual Meeting of the Financial Management Association International (FMA), Orlando, Florida, United States, 20th October 2007

Kalev P, Lok E and Westerholm J 2007 'Dynamics Between Equity Holdings and Returns', Annual Meeting of the Financial Management Association International (FMA), Orlando, Florida, United States, 20th October 2007

2006

6
Conference Proceeding/s

Do V, Guo-Sze Tan M and Westerholm J 2006 'Correlated Trading in a Concentrated Market', Financial Management Association (FMA) European Conference, Stockholm, Sweden, 1st January 2006-31st December 2006

Tran LH, Kalev P and Westerholm J 2006 'An analysis of flipping activity in early aftermarket trading', European Financial Management Annual Meeting, Madrid, Spain, 1st January 2006-31st December 2006 Link

Westerholm J and Keller A 2006 'Benchmarking a transition economy capital market', Brno International Conference on Applied Business Research (BICABR), Brno, Czech Republic, 1st October 2006

Westerholm J and Berglund T 2006 'Foreign investors' reaction to reduced profitability - does governance matter?', European Financial Management Association (EFMA) Annual Meeting, Madrid, Spain, 1st July 2006 Link

Westerholm J and Ben Sita B 2006 'The role of time in price discovery: Ultra-high frequency trading in a limit order book market', Financial Management Association (FMA) European Conference, Stockholm, Sweden, 9th June 2006 Link

Berglund T and Westerholm J 2006 'Foreign investors' reaction to reduced profitability - does governance matter?', Financial Management Association (FMA) European Conference, Stockholm, Sweden, 9th June 2006

Tran LH, Kalev P and Westerholm J 2006 'An analysis of flipping activity in early aftermarket trading', 13th Global Finance Conference, Rio de Janeiro, Brazil, 28th April 2006

Keller A and Westerholm J 2006 'A Market-Microstructural Comparison of a Well Established Capital Market with a Transition Economy Competitor: Euronext (France) vs.Warsaw Stock Exchange', International Conference on Accounting and Finance in Transition (ICAFT), Adelaide, Australia, 12th April 2006 Link

2005

5
Conference Paper/s

Westerholm J and Swan P 2005 'Transparency generally beats opacity: The impact of architectural features on global equity market performance', Accounting and Finance Association of Australia and New Zealand (AFAANZ) Annual Conference, Melbourne, VIC, Australia, 1st January 2005-31st December 2005

Westerholm J, Viet Do M and Guo-Sze Ran M 2005 'Investors' herding & corporate governance in a concentrated market', 18th Australasian Banking and Finance Conference, Sydney, NSW, Australia, 1st January 2005-31st December 2005

Westerholm J and Swan P 2005 'The impact of architectural features on global equity market performance: How harmful is opacity for trading success?', International Conference on New Financial Market Structures, Montreal, Canada, 8th April 2005

6
Conference Proceeding/s

Comerton-Forde C, O'Brien M and Westerholm J 2005 'An empirical analysis of strategic behavior models', European Financial Management Association (EFMA) Annual Meeting, Milan, Italy, 2nd July 2005 Link

2004

3
Edited Book/s

Westerholm J 2004 'Mergers and Acquisitions', McGraw-Hill Australia Inc

5
Conference Paper/s

Comerton-Forde C, O'Brien M and Westerholm J 2004 'An empirical analysis of strategic trading models', 17th Australasian Finance and Banking Conference, Sydney, Australia, 17th December 2004

Westerholm J and Swan P 2004 'The impact of market architectural features on world equity market performance: A structural equation approach', Western Finance Association Annual Conference, Vancouver, Canada, 3rd July 2004

2003

2
Book Section/s

Westerholm J 2003 'Do exchange listings bring the desired improvement in liquidity? Observations from the Nordic markets for venture capital and IPOs' in Research in Banking and Finance, ed. I Hasan and W Hunter, Elsevier Science, pp. 331-345

Westerholm J and Sandstrom A 2003 'Post-issue performance of hot IPO's' in New venture investment: Choices and consequences, ed. A Ginsberg and I Hasan, Elsevier, Amsterdam, Netherlands, pp. 227-255

3
Edited Book/s

Westerholm J 2003 'Mergers & acquisitions', McGraw-Hill Australia Inc., Sydney, NSW, Australia, pp. 408

4
Journal Article/s

Westerholm J 2003 'The impact of transaction costs on turnover and asset prices: The case of Sweden's and Finland's security transaction tax reduction', Finnish Journal of Business Economics, vol.2:3, pp. 213-241

Westerholm J and Kuuskoski M 2003 'Do direct stock market investments outperform mutual funds? A study of Finnish retail investors and mutual funds', Finnish Journal of Business Economics, vol.2:3, pp. 197-212

Westerholm J and Ollila M 2003 'Impact of gender, age and language on investment strategy', Finnish Journal of Business Economics, vol.2:3, pp. 179-196

5
Conference Paper/s

Haywood J and Westerholm J 2003 'Do informed investors react as expected to the arrival of information? Channels of order flow around financial statement announcements', Australasian Finance and Banking Conference, Sydney, NSW, Australia, 20th December 2003

Westerholm J and Swan P 2003 'The impact of market architectural features on world equity market performance: A structural equation approach', Australasian Finance and Banking Conference, Sydney, NSW, Australia, 20th December 2003

Westerholm J and Swan P 2003 'The impact of market architectural features on world equity market performance: A structural equation approach', Financial Management Association International Annual Meeting, Denver, Colorado, United States, 11th October 2003

Westerholm J and Swan P 2003 'The impact of market architectural features on world equity market performance: A structural equation approach', European Financial Management Association Annual Meeting, Helsinki, Finland, 1st - 30th June 2003

2002

4
Journal Article/s

Westerholm J 2002 'The relationship between liquidity, trading activity and return: Studies of the Finnish and Swedish stock markets', Ekonomi och Samhalle, vol.107, pp. 1-157

Westerholm J 2002 'Lectio precursoria: The relationship between liquidity and return - Note', The Journal of Economic Society, vol.55, pp. 236-239

5
Conference Paper/s

Westerholm J and Sandstrom A 2002 'Post issue performance of hot IPOs', Hawaii International Conference on Business, Honolulu Hawaii, United States, 1st January 2002-31st December 2002

2001

4
Journal Article/s

Westerholm J 2001 'Likviditetens betydelse vi initialemissioner, observationer fran aktiemarknaden i Finland (The importance of liquidity in initial public offerings: findings from the Finnish Stock Market)', Ekonomiska Samfundets Tidskrift (Journal of the Economic Society of Finland), vol.2001:3, pp. 135-145

2000

5
Conference Paper/s

Westerholm J 2000 'The impact of transaction costs on turnover and asset prices; the cases of Sweden's and Finland's security transaction tax reductions', Tor Vergata Banking and Finance Conference, Rome, Italy, 1st - 30th November 2000

Research Grants

2014

Informed vs. Noise Trading: Foreign and Domestic Retail and Institutional Liquidity Demanders and Providers

Is the investment performance of individual household investors impacted by behavioural biases to the extent that they need to be protected by regulation? This project aims to provide scientific evidence to help regulators, stock exchange officials and service providers introduce effective measures for financial consumer/investor protection.

Our research aims to provide a clear picture of the demographics and preferences of Australian household investors and the role they play as counterparties to foreign and domestic institutional investors. We will introduce cutting edge techniques that recently have cast serious doubts over the previous literature, in which all individuals are simply categorised as uninformed and all institutions as informed. We will investigate the investment preferences and share trading behaviour of Australian household investors using highly detailed transaction records identified at the order level in combination with aggregated share holdings data from the share depository.

CIFR Research Project

See all Business School Grants

Research Expertise

  • Information economics
  • Initial public offerings (IPOs)
  • International securities markets
  • Mergers and acquisitions
  • Securities market microstructure
  • Asset Pricing

Recent Units Taught