scholarly journals State Antitakeover Laws and Voluntary Disclosure

2013 ◽  
Vol 48 (2) ◽  
pp. 637-668 ◽  
Author(s):  
Yijiang Zhao ◽  
Arthur Allen ◽  
Iftekhar Hasan
Keyword(s):  
Stock Market ◽  
Capital Market ◽  
Voluntary Disclosure ◽  
Driving Force ◽  
Market Liquidity ◽  
Stock Market Liquidity ◽  
Market Benefits ◽  
The Relationship

AbstractWe test the relationship between takeover protection and voluntary disclosure in a setting of antitakeover laws in a firm’s state of incorporation. After correcting for the endogeneity of firms’ incorporation choices, we find that firms incorporated in states with more antitakeover laws have higher levels of voluntary disclosure and stock market liquidity. Further tests do not support shareholder demands being the driving force for this association. Our findings are consistent with takeover protection and poor disclosure serving as substitute mechanisms for deterring takeovers. Therefore, as antitakeover statutes mitigate takeover threats, they enhance managers’ incentives to disclose more in order to realize capital market benefits.

scholarly journals Foreign Ownership Effect to Stock Market Liquidity in Indonesia

MANAJERIAL ◽  
2021 ◽  
Vol 8 (01) ◽  
pp. 01
Author(s):  
Annisa Yasmin
Keyword(s):  
Stock Market ◽  
Financial Institutions ◽  
Capital Market ◽  
Foreign Ownership ◽  
Market Liquidity ◽  
Linear Effect ◽  
Non Linear Effect ◽  
Non Linear ◽  
Stock Market Liquidity ◽  
Research Period

Background – One of economic indicators of a country is the capital market. Liquid capital market can attract investors, both foreign and domestic investors, to invest their ownership in that country, which in turn can improve the country’s economic growth. Aim – This research aims to examine the influence foreign ownership on stock market liquidity in Indonesia. Design / methodology / approach – This research splits foreign ownership into two groups, the first one is foreign ownership by financial institutions, and the second one is foreign ownership by non-financial corporations. The type of data used is panel data using fixed effect model (FEM). The technique for examining the influence of foreign ownership on liquidity used multiple regression analysis. Findings – The result found that foreign ownership by financial institutions and non-financial corporations negatively affect liquidity.  The study also found a positively non-linear effect between foreign ownership by financial institutions to liquidity and a negatively non-linear effect between foreign ownership by non-financial institutions to liquidity. Research implication – This research can assist investors in determining investment in the Indonesian capital market by pay attention to variables such as foreign ownership, return, turnover, market capitalization and standard deviation. Limitation – The research period was short, which was only 21 months due to limited data and the research period that has passed too long, that is January 2012 to September 2013.

Security market regulation: antecedents for capital market confidence in frontier markets

2018 ◽  
Vol 31 (2) ◽  
pp. 157-173
Author(s):  
Erick Rading Outa ◽  
Nelson Maina Waweru ◽  
Peterson Kitakogelu Ozili
Keyword(s):  
Stock Market ◽  
Capital Market ◽  
Secondary Data ◽  
Market Liquidity ◽  
Security Market ◽  
Market Regulation ◽  
Content Type ◽  
Market Effects ◽  
Strong Motivation ◽  
Stock Market Liquidity

PurposeThe purpose of this study is to examine the capital market effects of corporate governance (CG) practices of a “comply or explain” environment on stock market liquidity in a frontier market.Design/methodology/approachUsing secondary data from Nairobi Securities Exchange, the liquidity position is analyzed using panel data random effects regression against CG guidelines.FindingsThe results show a negative and significant relationship between CG compliance and stock market liquidity, suggesting that regulated CG practices improve market liquidity in Kenya. The results are remarkably robust to different measures of liquidity and supports agency and signaling theory.Practical implicationsThe authors provide evidence to show that security regulation improves stock market liquidity in a frontier market whose characteristics are thought not to favor regulation. Therefore, regulators and stakeholders could be motivated by the benefits of regulation, and this could lead to renewed effort to improve CG compliance.Originality valueThe findings show that security market regulation through CG guidelines can improve stock market liquidity in frontier markets. This offers regulators and policymakers a strong motivation to enhance security regulation to improve capital market confidence.

scholarly journals Analysis of the Relationship between Monetary Policy and Stock Market Liquidity

2021 ◽  
Vol 4 (3) ◽  
pp. 25-27
Author(s):  
Feng Liang
Keyword(s):  
Monetary Policy ◽  
Stock Market ◽  
Financial Market ◽  
Market Liquidity ◽  
System Reform ◽  
Chinese Enterprises ◽  
Socialist Market Economy ◽  
Stock Market Liquidity ◽  
Effect Of Monetary Policy ◽  
The Relationship

After the 19th National Congress of the Chinese Communist Party, the introduction of the economic theory has promoted the integration of the global socialist market economy. Thereafter, this integration of the domestic and international market has been preliminarily completed, the role of the factor market in resource allocation has been improved, and a sturdy environment has been established for the development of Chinese enterprises. With the effective implementation of a series of policies after the financial system reform, the roles of the financial market in regulating macro-economy and revitalizing the market have become increasingly prominent. In regard to that, it has effectively promoted the financial market as a trade to “enrich people.” This paper analyzes the relationship between monetary policy and stock market liquidity in terms of the influence of the former on the latter and suggests strategies to enhance the liquidity effect of monetary policy.

Corporate Governance and Stock Market Liquidity

2016 ◽  
Vol 5 (3) ◽  
Author(s):  
Manjit Kaur Sidhu
Keyword(s):  
Corporate Governance ◽  
Stock Market ◽  
Information Disclosure ◽  
Market Liquidity ◽  
Manufacturing Companies ◽  
Governance Practices ◽  
Stock Market Liquidity ◽  
The Relationship ◽  
Corporate Information

Corporate governance has an impact on both quantity and quality of corporate information disclosure which affects the level of information asymmetry and thus impacts the changes in market liquidity of stock. This article attempts to discern the relationship between corporate governance and the stock market liquidity of Indian manufacturing companies included in the S&P BSE 100 Index during the period 2009-2012 by invoking pooled regression model. The empirical results support corporate governance implications of stock market liquidity as measured by Amivest measure (1985), that is, better governed companies has higher liquidity. The results of the present study are in support of arguments made by Chung, Elder, and Kim (2010), i.e., firms may improve stock market liquidity by adopting corporate governance practices that mitigate informational asymmetries.

Sign in / Sign up

Export Citation Format

Share Document