Evaluate the Relationship between Company Performance and Stock Market Liquidity

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.

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Analysis of the Relationship between Monetary Policy and Stock Market Liquidity

Proceedings of Business and Economic Studies ◽

10.26689/pbes.v4i3.2184 ◽

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.

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Corporate Governance and Stock Market Liquidity

Journal of Commerce and Accounting Research ◽

10.21863/jcar/2016.5.3.033 ◽

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.

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