scholarly journals Stock market liquidity and firm dividend policy: Evidence from Tehran Stock Exchange

2014 ◽  
Vol 4 (8) ◽  
pp. 1849-1858 ◽  
Author(s):  
Hassan Ghodrati ◽  
Seyed Reza Ghazi Fini
Keyword(s):  
Stock Market ◽  
Dividend Policy ◽  
Stock Exchange ◽  
Market Liquidity ◽  
Stock Market Liquidity

The Impact of Investor Sentiment on Stock Market Liquidity: The Mediating Role of Investor Herding Behavior “An Empirical Study on the Egyptian Stock Exchange”

2021 ◽  
pp. 31-60
Author(s):  
A. H. El-Gayar ◽  
◽  
I. A. El-Hayes ◽  
S. Metawa ◽  
◽  
...  
Keyword(s):  
Stock Market ◽  
Empirical Study ◽  
Mutual Fund ◽  
Stock Exchange ◽  
Investor Sentiment ◽  
Theoretical Background ◽  
Market Liquidity ◽  
Indirect Impact ◽  
Stock Market Liquidity ◽  
The Impact

Behavioral finance is a recent approach in financial markets that have appeared because of the complexities long faced by the traditional or neoclassical finance theory. This paper investigates the influence of investor sentiment and herding behaviour on stock market liquidity using an empirical study on the Egyptian Stock Market. We examine the direct impact of Egyptian investor sentiment on the Egyptian Stock Market liquidity. As well as the indirect impact of the Egyptian investor sentiment on the Egyptian Stock Market liquidity through the Egyptian investor herding behaviour. Therefore, the major contribution is filling the gap of indirect sentiment-liquidity impact conflict. We use the monthly data of the EGX30 index from January 2004 up to December 2018 for building up investor sentiment index, investor herding behaviour, and stock market liquidity measures. Moreover, we are using two additional types of data (closed-end mutual fund discounts and the equity open-end mutual fund flows) that represent major measures which are used to build up investor sentiment index ranging through the same time-series of the previously mentioned period of this paper. Additionally, we use four control variables for stock market liquidity, namely market volatility, excess market return, term spread, and lag of the dependent variable, considering that the fourth variable is also used for investor herding behaviour. Our result shows that the investor sentiment index has both a direct and indirect impact on stock market liquidity. In addition, regarding event study analysis’ results, there are different signs of the direct and indirect impacts and different correlations between the research variables throughout the four different events that differ completely from the usual signs and correlations of the theoretical background.

scholarly journals The Moderating Role of Information Asymmetry in the Relationship between Stock Market Liquidity and Institutional Investors: A Case of Textile Sector in Pakistan Stock Exchange

2019 ◽  
Vol IV (I) ◽  
pp. 10-18
Author(s):  
Muhammad Arif
Keyword(s):  
Stock Market ◽  
Information Asymmetry ◽  
Institutional Investors ◽  
Stock Exchange ◽  
Market Liquidity ◽  
Significance Level ◽  
Stock Market Liquidity ◽  
Role Of Information ◽  
Textile Sector

The study focused on the moderation role of information asymmetry (IA) that plays a vital role between Stock market liquidity (SML) and Institutional investors (I.I) in textile sector of Pakistan stock exchange (PSX). Among total population of 155 companies, a sample of 150 textile companies is chosen with the help of convenient sampling technique for a period of 10 years (2009-2018). The results of Pre-moderation panel data regression analysis show that there is insignificant effect of I.I on SML while size (SZ), leverage (LEV) and growth (GR) have significant effect on SML. Further, post-moderation effect of IA, which is the uniqueness of the study, indicates a stronger significant effect of SZ, LEV and GR on SML as compare to pre-moderation regression results, which evident that IA do has a significant role between explanatory variables and SML. The results of the study are supporting the signaling theory on the base of moderation of IA that increases the significance level between I.I and SML.

scholarly journals Impact of Number of Security Analysts in Liquidity of Brazilian Stocks

2016 ◽  
Vol 9 (11) ◽  
pp. 105
Author(s):  
Liliam Sanchez Carrete ◽  
Vitor Corona ◽  
Rosana Tavares
Keyword(s):  
Stock Market ◽  
Cross Section ◽  
Positive Impact ◽  
Stock Exchange ◽  
Market Liquidity ◽  
Security Analysts ◽  
Securities Analysts ◽  
Independent Variable ◽  
Stock Market Liquidity ◽  
Stock Analysts

<p>This study investigates impacts of sell-side analysts in the liquidity of firm’s shares of Brazilian Capital Markets. Liquidity hypothesis studied by Brennan and Subrahmanyan (1995), Brennan and Tamarowski (2000), Amihud and Mendelson (1986, 2000) and Amihud <em>et al. (</em>1997) defines that an increase in the number of analysts covering a particular stock increases its liquidity causing a positive impact on the stocks prices. This work investigates empirically whether increasing number of securities analysts impacts stock market liquidity, as observed in the American market by Brennan and Tamarowski (2000), using a sample of 179 listed stocks in the Brazilian stock exchange, BM&amp;FBovespa. This work determines liquidity-measuring firm’s Lambda dollar derived by Kyle (1985) and then applying cross section regression of Lambda dollar as dependent variable and number of analysts as independent variable. Results indicate that stock market liquidity increased with number of securities stock analysts in favor of liquidity hypothesis.</p>

Stock Market Liquidity and Firm Dividend Policy

2003 ◽  
Author(s):  
Suman Banerjee ◽  
Vladimir A. Gatchev ◽  
Paul A. Spindt
Keyword(s):  
Stock Market ◽  
Dividend Policy ◽  
Market Liquidity ◽  
Stock Market Liquidity

Stock Market Liquidity and Firm Dividend Policy

2007 ◽  
Vol 42 (2) ◽  
pp. 369-397 ◽  
Author(s):  
Suman Banerjee ◽  
Vladimir A. Gatchev ◽  
Paul A. Spindt
Keyword(s):  
Stock Market ◽  
Firm Value ◽  
Dividend Policy ◽  
Important Determinant ◽  
Market Liquidity ◽  
Cross Sectional ◽  
Dividend Initiations ◽  
Stock Market Liquidity ◽  
Fama And French ◽  
To Receive

AbstractWe provide evidence of a link between firm dividend policy and stock market liquidity. In the cross section, owners of less (more) liquid common stock are more (less) likely to receive cash dividends. Predictions of the proportion of dividend payers based on 1963–1977 cross-sectional estimates account for most of the declining propensity of firms to pay dividends as documented by Fama and French (2001). Furthermore, historic liquidity is an important determinant of dividend initiations and omissions. Finally, we show that sensitivity of firm value to aggregate liquidity declines after dividend initiations, suggesting that investors view stock market liquidity and dividends as substitutes.

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