01194nas a2200205 4500008004100000245005600041210005100097260000900148300001200157490000700169520061200176653002100788653001200809653000800821653001700829100002100846700001700867700001600884856008800900 2009 eng d00aThe magnet effect of price limits: a logit approach0 amagnet effect of price limits a logit approach c2009 a830-8370 v163 aWe investigate the magnet effect of price limits using transaction data from the Taiwan Stock Exchange. A logit model incorporates explanatory variables from microstructure literature and reveals that the conditional probability of a price increase (decrease) increases significantly when the price approaches the upper (lower) price limit, in support of the magnet effect. Our approach recognizes when the magnet effect starts to emerge and identifies possible determinants of magnet effect. The probability of information-based trading has a significant impact on the magnet effect for lower price limits.10aDoctoral Program10aFinance10aMBA10aSupply Chain1 aHsieh, Ping-Hung1 aKim, Yong, H1 aYang, Jimmy uhttps://business.oregonstate.edu/biblio/magnet-effect-price-limits-logit-approach-0