The impact of mandatory versus voluntary auditor switches on stock liquidity: Some Korean evidence

2015 ◽  
Vol 47 (1) ◽  
pp. 100-116 ◽  
Author(s):  
Sunhwa Choi ◽  
Youn-Sik Choi ◽  
Ferdinand A. Gul ◽  
Woo-Jong Lee
Keyword(s):  
Stock Liquidity ◽  
Auditor Switches ◽  
The Impact ◽  
Korean Evidence

scholarly journals Stock Liquidity, Financial Report Quality, Wedge, and The Propensity to Pay Dividend

2019 ◽  
Vol 12 (3) ◽  
pp. 239
Author(s):  
Rahmat Setiawan ◽  
Nova Christiana ◽  
Sanju Kumar Singh
Keyword(s):  
Agency Conflicts ◽  
Probit Regression ◽  
Government Ownership ◽  
Stock Liquidity ◽  
Financial Report ◽  
Listed Firms ◽  
Report Quality ◽  
Liquidity Measures ◽  
Propensity To Pay ◽  
The Impact

This research examined the effect of stock liquidity on the propensity to pay dividend for 254 Indonesian public listed firms during the period of l 2011 and 2015. Stock liquidity implies transparency level and serves as market monitor for management performance in using the cash flow. Furthermore, this research examines the impact of stock liquidity on dividend payment in the presence of agency conflicts using agency proxies, wedge and government ownership. This paper employed multivariate probit regression. The baseline model has controlled for time in-variant and industry sectors. Robustness checks are employed to present consistent result for other stock liquidity measures. The results confirm the predicted dividend model outcome and prove the contradiction in dividend signaling theory.

scholarly journals The impact of mandatory adoption of XBRL on firm’s stock liquidity: a cross-country study

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Wafa Sassi ◽  
Hakim Ben Othman ◽  
Khaled Hussainey
Keyword(s):  
Design Methodology ◽  
Civil Law ◽  
Random Effects Model ◽  
Stock Liquidity ◽  
Content Type ◽  
Business Reporting ◽  
Country Study ◽  
Mandatory Adoption ◽  
Cross Country ◽  
The Impact

Purpose The purpose of this paper is to examine the impact of the mandatory adoption of eXtensible Business Reporting Language (XBRL) on firm’s stock liquidity. Design/methodology/approach Using a random-effects model, this study examines the impact of the mandatory adoption of XBRL (ADOPXBRL) on firm’s stock liquidity of 980 companies pertaining to 13 countries for a period from 2000 to 2016. Findings This paper finds that the mandatory ADOPXBRL affects negatively and significatively Amihud’s (2002) illiquidity ratio. Therefore, mandatory XBRL adoption enhances the firm’s stock liquidity. In addition, this paper finds that the impact of the mandatory ADOPXBRL on firm’s stock liquidity is more pronounced in civil law countries than in common law countries. Originality/value This paper contributes to the literature on the advantage of XBRL especially for the civil law countries by examining the impact of the mandatory ADOPXBRL on firm’s stock liquidity.

scholarly journals An Investigation Of The Relation Between Corporate Governance And Liquidity: Empirical Evidence From France

2015 ◽  
Vol 31 (2) ◽  
pp. 631 ◽  
Author(s):  
Majdi Karmani ◽  
Aymen Ajina ◽  
Rym Boussaada
Keyword(s):  
Corporate Governance ◽  
Best Practices ◽  
Information Asymmetry ◽  
Market Liquidity ◽  
Significant Determinant ◽  
Global Effect ◽  
Stock Liquidity ◽  
Governance Effectiveness ◽  
The Impact ◽  
Effective Spread

This study investigates the impact of corporate governance effectiveness on the market stock liquidity. It is innovative, since we study, on an order driven market, the global effect of corporate governance and the effect of specific governance sub-indexes. Drawing on a sample of 287 French firms from 2007 to 2012, we find that corporate governance is a significant determinant of stock liquidity. Indeed, companies with an effective corporate governance have a narrower spreads. Thats mean that corporate governance may alleviate information asymmetry and improve the market stock liquidity of French companies. Our results are remarkably robust to other set of measures of liquidity as the effective spread measure and illiquidity ratio. These results suggest that firms may improve stock market liquidity by adopting best practices of corporate governance that mitigate informational asymmetries.

Does Stock Liquidity Affect Corporate Debt Maturity Structure?

2020 ◽  
pp. 2150005
Author(s):  
Joseph M. Marks ◽  
Chenguang Shang
Keyword(s):  
Stock Market ◽  
Debt Maturity ◽  
Market Liquidity ◽  
Stock Liquidity ◽  
Yield Spreads ◽  
Debt Maturity Structure ◽  
Bond Yield ◽  
Maturity Structure ◽  
Stock Market Liquidity ◽  
The Impact

We show an inverse relation between the use of short-term debt and stock market liquidity. This finding is robust to a battery of control variables, alternative measures of the key variables, and various identification strategies. A difference-in-difference (DiD) approach suggests that the relation between debt maturity structure and stock liquidity may be causal. The impact of stock liquidity on debt maturity is stronger in the presence of large institutional holdings and when borrowers are subject to greater refinancing risk. We also provide evidence that firms with liquid stock tend to issue longer-term bonds and enjoy lower bond yield spreads. Overall, our results support the view that the governance function of stock market liquidity reduces the necessity of debt market monitoring, which allows firms to shift toward longer-term debt to avoid the costs and risk of frequent refinancing.

The Impact of COVID-19 on Stock Market in China

2021 ◽  
Vol 16 (4) ◽  
pp. 714-743
Author(s):  
Nan Li ◽  
◽  
Yuhong Zhu ◽  
Keyword(s):  
Stock Market ◽  
Stock Prices ◽  
Structural Break ◽  
Equity Premium ◽  
Liquidity Premium ◽  
Stock Liquidity ◽  
Spring Festival ◽  
Before And After ◽  
The Impact ◽  
The U.S

This paper studies the impact of the COVID-19 on the stock ambiguity, risks, liquidity, and stock prices in China stock market, before and after the outbreak of COVID-19 during the Chinese Spring Festival holidays in 2020. We measure stock ambiguity using the intraday trading data. The outbreak of COVID-19 has a significant impact on the average stock ambiguity, risk, and illiquidity in China and induces structural break in the market average ambiguity. However, the equity premium and liquidity premium change little during the same period. The market average stock ambiguity and risks decrease, and stock liquidity improves to pre-pandemic levels as the pandemic is under control in China. The market average stock ambiguity and risks in China increase again when the confirmed new cases in the U.S. surge in the second half of 2020. We also find a “flight-to-liquidity” phenomenon, and the equally-weighted (value-weighted) 20-trading-day liquidity premium declined significantly to about –4.42% (–6.48%) during the fourth quarter of 2020.

The impact of companies internal factors on stock liquidity in Pakistan

2018 ◽  
Vol 1 (1) ◽  
pp. 1
Author(s):  
Badal Khan ◽  
Muhammad Mushtaq ◽  
Abdul Majid Nasir ◽  
Muhammad Tahir
Keyword(s):  
Internal Factors ◽  
Stock Liquidity ◽  
The Impact
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