Stock liquidity and investment efficiency: Evidence from the split-share structure reform in China

被引：2
|
作者：
Cheung, William Ming Yan [1 ]
Im, Hyun Joong [2 ]
Selvam, Srinivasan [3 ]
机构：
[1] Waseda Univ, Waseda Business Sch, Tokyo, Japan
[2] Univ Seoul, Coll Business Adm, Seoul, South Korea
[3] EDHEC Business Sch, Lille, France
来源：
EMERGING MARKETS REVIEW | 2023年 / 56卷
关键词：
Stock liquidity; Investment efficiency; Institutional ownership; Information efficiency; Corporate governance; CORPORATE GOVERNANCE; INSTITUTIONAL INVESTORS; FINANCIAL CONSTRAINTS; MARKET-EFFICIENCY; AGENCY COSTS; PRICE; ILLIQUIDITY; SENSITIVITY; EARNINGS; QUALITY;
D O I：
10.1016/j.ememar.2023.101046
中图分类号：
F8 [财政、金融];
学科分类号：
0202 ;
摘要：
Using China's split-share structure reform, we examined the effect of stock liquidity on investment efficiency. We found that enhanced stock liquidity results in more efficient investments and the effect is much more pronounced for under-investing firms than for over-investing firms. Additionally, we found that an increase in institutional ownership and price efficiency generated by a change in stock liquidity is positively associated with a reduction in under-investment. Thus, these findings suggest that under-investing firms with liquid stocks have more informed investors and face greater pressure to select an optimal investment level in the post-reform period.
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页数：28
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