Does Ownership Change and Traders Behavior Enhancing Price Fragility in Green Funds Market

Abstract

The aspiration to conduct this study is to address the reasons and assess the factors associated with fragility of green funds equity prices in Pakistan. The study highlights the gap of study and origin of price fragility in conventional finance by linking it from simple phenomena of equity price to price fragility. Systematic sampling technique is deployed for data collection. And we have tested data by using ARCH, GARCH and EGARCH techniques for data analysis. The results have found significant contextual contributions of green funds ownership, arbitrager’s role in producing fragile equity prices. Therefore, planning and implementing structural strategies for long run to support green funds trading and their price mechanism. In PSX arbitrage trading should be controlled in procedurally and mispricing should be coped via a sophisticated discouraging policies. Moreover, there should be a scale for holding the equity green funds to demoralize extensive dilution of ownership of green funds. The worth of the study is in its contextual theoretically jointed sekelton that has rarely been studied earlier.