Joakim Westerholm

Photo of Joakim Westerholm

MScEcon PhD Swedish Sch. Econ (Finland)
Associate Professor;
Discipline Deputy Head of Research

Rm 409
H69 - Codrington Building
The University of Sydney
NSW 2006 Australia

Telephone +61 2 9351 6454
Fax +61 2 9351 6461


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 research articles in Journal of Finance, Review of Finance and Journal of Corporate Finance. His research has been accepted for presentation at Finance conferences such as the Western Finance Association Meeting (WFA), the European Finance Association (EFA), the Financial Management Association (FMA) International Meetings in USA and Europe, and the Society for Financial Studies (SFS) Finance Cavalcade.

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

Research Interests

Joakim Westerholm’s research interests are broad and span several sub-fields in financial economics. In Asset Pricing his research investigates the pricing impact of trading by insiders, mutual funds and institutional investors. His work showing that insider trades can be better understood through the trading decisions of underaged accounts, brokers and directors, has gained traction in journals of the highest standing. In Market Microstructure Joakim specialises in optimal market design and trading strategies for execution of large orders. His ARC discovery grant work comparing the exchange architecture of world exchanges gained widespread attention early in his career. Joakim’s current work in market microstructure on High Frequency Trading and theory based optimal strategies for Order Splitting has potential to be groundbreaking. In Behavioral Finance Joakim’s research is around investor behaviour under stressful life events such as divorce. In this work new ways of applying matching and difference in difference methodology have been developed. Joakim is also working on anomalies currently unexplained in the literature such as anchoring to a reference price, momentum effects, and the importance of the highest price a security has traded at during the last 52 weeks. Finally in Corporate Finance Joakim has recently published research in leading journals on the impact of the CEOs personal attributes on their decisions for the firm. Using knowledge about the personal investment strategies of CEOs to find their personal attributes, his research investigates the impact of CEO preferences on their decisions to acquire other companies, invest in research and development, and to expand the firm through leverage.

Selected publications


Journal Articles

Da Dalt C, Feldman D, Garvey G, and Westerholm P (2019) Contrarians or Momentum Chasers? Individual Investors' Behavior when Trading ETFs The Journal of Futures Markets, In Press. [More Information]

Leung H, Tse J, and Westerholm P (2019) CEO Traders and Corporate Acquisitions Journal of Corporate Finance, 54, 107-127. [More Information]


Westerholm P (2019) Lecture notes in market microstructure and trading; World Scientific Publishing, New Jersey. [More Information]


Journal Articles

Berkman H, Koch P, and Westerholm P (2018) Personal Trading by Brokers, Analysts, and Fund Managers Mutual Funds, Hedge Funds, & Investment Industry eJournal, 10 (164), 1-67. [More Information]

Frijns B, Huynh T, Tourani-Rad A, and Westerholm P (2018) Institutional trading and asset pricing Journal of Banking & Finance, 89, 59-77. [More Information]

Conference Proceedings

Leung H, Hamann J, Westerholm P, and Wilkens M (2018) Mutual Funds and Trading Around Earnings Announcements World Finance & Banking Symposium, Taichung Taiwan 13-14 December.

Mao R, Segara R, and Westerholm P (2018) Analyst Tipping: Evidence on Finnish Stocks 2nd INFINITI Conference on International Finance ASIA-PACIFIC; The University of Sydney Business School, Sydney, Australia, 10-11 December 2018.

Mao R, Segara R, and Westerholm P (2018) Analyst Tipping: Evidence on Finnish Stocks 8th New Zealand Finance Meeting; Auckland University of Technology, New Zealand.

Segara R, and Westerholm P (2018) Analyst Tipping: Evidence on Finnish Stocks World Finance Conference; World Finance Conference, Mauritius.

Wu V, Westerholm P, and Akhtar S (2018) Who Moves First? Price Discovery by Institutional and Retail Investors 22nd European Financial Management Association FMA Conference; European Financial Management Association, Kristiansand, Norway, 13-15 June 2018.

Seminar Paper

Mao R, Segara R, and Westerholm P (2018) Analyst Tipping: Evidence on Finnish Stocks Research workshop at School of Management, Zheijiang University; Zheijiang University, China.


Journal Articles

Frino A, Viljoen T, Wang G, Westerholm P, and Zheng H (2017) An empirical analysis of algorithmic trading around earnings announcements Pacific-Basin Finance Journal, 45, 34-51. [More Information]

Reza Bradrania M, Grant A, Westerholm P, and Wu W (2017) Fool's mate: What does CHESS tell us about individual investor trading performance? Accounting and Finance, 57 (4), 981-1017. [More Information]

Book Chapter

Swan P, and Westerholm P (2017) Are Domestic Household Investors Better Performers than Foreign Institutions? New Evidence from Finland Behavioral Finance: Where do Investors' Biases Come From?; World Scientific Publishing, Singapore, 115-155. [More Information]


Journal Articles

Reza Bradrania M, Westerholm P, and Yeoh J (2016) Do CEOs who trade shares adopt more aggressive corporate investment strategies? Pacific-Basin Finance Journal, 40, 349-366. [More Information]

Westerholm P (2016) Guest editorial International Journal of Managerial Finance, 12 (4). [More Information]

Conference Proceedings

Berkman H, Koch P, and Westerholm P (2016) Personal Trading by Employees of Financial Institutions 2016 Midwest Finance Association (MFA) Annual Meeting; Midwest Finance Association, Edmond, OK United States.

Westerholm P (2016) High Frequency Trading, Market Volatility and Trading Counterparty Performance 20th Annual European Conference of the Financial Management Association International (FMA); Financial Management Association (FMA), Tampa FL, United States.


Berkman H, Bradrania R, Viljoen T, and Westerholm P (2016) Insiders' Profits in the Australian Equities Market; The Centre for International Finance and Regulation, Sydney, 3-35.


Journal Article

Berkman H, Koch P, and Westerholm P (2015) Beware of Children Trading Journal of Investment Management, 13 (3), 80-92.

Conference Proceedings

Leung H, Krug J, Westerholm P, Schiereck D, and Fong K (2015) Determinants of Household Broker Choice and the Impact on Performance 28th Australasian Finance and Banking Conference; Social Science Research Network, Rochester, NY, USA. [More Information]

Westerholm P, and Akhtar S (2015) Who Moves First? Price Discovery by Institutional and Retail Investors 5th Auckland Finance Meeting; Auckland University of Technology, Auckland, New Zealand.


Journal Articles

Berkman H, Koch P, and Westerholm P (2014) Informed Trading through the Accounts of Children The Journal of Finance, 69 (1), 363-404. [More Information]

Leung H, Rose A, and Westerholm P (2014) Systematic Trading Behavior and the Cross-Section of Stock Returns on the OMXH Review of Finance, 18 (6), 2325-2374. [More Information]

Viljoen T, Westerholm P, and Zheng H (2014) Algorithmic Trading, Liquidity, and Price Discovery: An Intraday Analysis of the SPI 200 Futures The Financial Review (Statesboro), 49 (2), 245-270. [More Information]


Journal Articles

Pham T, and Westerholm P (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 and Money, 27, 202-223. [More Information]

Westerholm P, and Mostafa M (2013) Price discovery and success factors for individual stock futures International Journal of Bonds and Derivatives, 1 (1), 3-18.


Conference Proceeding

Leung H, Westerholm P, and Rose A (2012) Informational Effect and Market Quality Impact of Crossed Trades and Fleeting Orders on the Australian Securities Exchange 2012 World Finance & Banking Symposium - "Asian Finance & Banking"; Cheung Kong Graduate School of Business, Shanghai, China.


Journal Articles

Ben Sita B, and Westerholm P (2011) The Role of Trading Intensity Estimating the Implicit Bid-Ask Spread and Determining Transitory Effects International Review of Financial Analysis, 20 (5), 306-310. [More Information]

Westerholm P, and Leung H (2011) Execution Costs of Market Designs Worldwide during the Global Credit Crisis Journal of Trading, 6 (4), 60-81.


Journal Article

Berglund T, and Westerholm P (2010) Foreign Investors' Reaction to Lower Profitability - The Role of Information Asymmetry International Review of Finance, 10 (4), 455-483. [More Information]

Conference Proceeding

Pham T, Swan P, and Westerholm P (2010) The public Limit Order Book of the Korea Exchange: Market capitalization dependent endogenous effects on spreads, volatility and volume 59th Midwest Finance Association 2010 Conference; Midwest Finance Association, USA.


Journal Article

Westerholm P (2009) Do uninformed crossed and internalized trades tap into unexpressed liquidity? The case of Nokia Accounting and Finance, 49 (2), 407-424. [More Information]


Journal Articles

Do V, Tan M, and Westerholm P (2008) Correlated Trading in Concentrated Market Journal of International Finance and Economics, 8 (4), 148-163.

Jarnecic E, Segara R, Segara L, and Westerholm P (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, 2 (3), 26-56.

Conference Proceeding

Kato K, Fabre J, and Westerholm P (2008) Are Poison Pills Poison for Shareholders? Evidence from Japan Asian Finance Association - Nippon Finance Association International Conference(AsianFA-NFA 2008); Asian Finance Association/Nippon Finance Association, Japan.

Book Chapter

Westerholm P (2008) Dealing and Market Making Trade Execution, Arbitrage and Dealing in Australia; Pearson Education, Sydney, Australia, 99-122.


Journal Articles

Comerton-Forde C, O'Brien M, and Westerholm P (2007) An Empirical Analysis of Strategic Behaviour Models Australian Journal of Management, 32 (2), 181-203.

Cristea M, and Westerholm P (2007) World Pension Systems- Comparison between Europe and Australia Annals of the University of Craiova (Economics Science Series), 35 (1), 99-102.

Keller A, and Westerholm P (2007) Benchmarking a Transition Economy Capital Market Australasian Accounting Business and Finance Journal, 1 (3), 49-60.

Westerholm P (2007) Industry Clustering in Nordic Initial Public Offering Markets International Review of Finance, 6 (1-2), 25-41.

Conference Proceedings

Berglund T, Farooq O, and Westerholm P (2007) Do Analysts Revise Their Recommendations To Increase Trading By Clients 2007 Financial Management Association European Conference FMA 2007; Financial Management Association (FMA), USA.

Cohn-Urbach B, and Westerholm P (2007) Trading Frequency, Investor Returns & Behavioral Biases 2007 Financial Management Association Annual Meeting (FMA 2007); Financial Management Association (FMA), USA.


Conference Proceedings

Ben Sita B, and Westerholm P (2006) The Role of Time in Price Discovery: Ultra-high frequency trading in a Limit Order Book Market Financial Management Association (FMA) European Conference 2006 - 2006 FMA European Conference; Financial Management Association (FMA), USA.

Keller A, and Westerholm P (2006) A Market-Microstructural Comparison of a Well Established Capital Market with a Transition Economy Competitor: Euronext (France) vs. the Warsaw Stock Exchange The 4th International Conference on Accounting and Finance in Transition (ICAFT 2006); University of South Australia, Centre for Research in Education, Equity and Work, Adelaide SA.


Conference Proceeding

Comerton-Forde C, O'Brien M, and Westerholm P (2005) An empirical analysis of strategic behavior models European Financial Management Association (EFMA) 2005 Annual Conference; European Financial Management Association, USA.


Conference Proceeding

Comerton-Forde C, O'Brien M, and Westerholm P (2004) An empirical analysis of strategic trading models 17th Australasian Finance and Banking Conference.


Journal Articles

Westerholm P (2003) The impact of transaction costs on turnover, asset prices and volatility: The cases of Sweden's and Finland's security transaction tax reductions LTA- The Finnish Journal of Business Economics Liiketaloudellinen Aikakauskirja, 38778, 213-241.

Westerholm P, and Kuuskoski M (2003) Do direct stock market investments outperform mutual funds? A study of finnish retail investors and mutual funds LTA- The Finnish Journal of Business Economics Liiketaloudellinen Aikakauskirja, 2 (3), 197-212.

Westerholm P, and Ollila M (2003) Impact of gender, age and language on investment strategy LTA- The Finnish Journal of Business Economics Liiketaloudellinen Aikakauskirja, 2 (3), 179-196.

Book Chapters

Sandstrom A, and Westerholm P (2003) Post-issue performance of hot IPOs New Venture Investment: Choices and Consequences; Elsevier, Netherlands, 227-251.

Westerholm P (2003) Do exchange listings bring the desired improvement in liquidity? Observations from the Nordic markets for venture capital and IPOs Research in Banking and Finance; JAI Press, UK, 331-346.

Recent Units Taught

  • BUSS4403 Finance Honours B

  • FINC5001 Capital Markets and Corporate Finance

  • FINC6015 Global Trading

  • FINC6017 Mergers and Acquisitions

Newsroom articles

  • The highs and lows of retail investing 18 Sep 2018

    Australian Financial Review

    Australian Financial Review reported on a new study by Joshua Della Vedova, Dr Andrew Grant and Associate Professor Joakim Westerholm from the Business School that compared institutional investors with retail investors.

  • Hidden figures. Women manage money better 04 Mar 2017

    The Sun Herald, Sunday Age and Sunday Canberra Times

    The Sun Herald, Sunday Age and Sunday Canberra Times mentioned Associate Professor Joakim Westerholm has collected Finnish data on the stock market performance of women and men during the Global Financial Crisis.

  • 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.

  • 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.

See all Newsroom items for Joakim Westerholm