Corporate investment and stock liquidity: Evidence on the price impact of trade
- Title
- Corporate investment and stock liquidity: Evidence on the price impact of trade
- Author
- 엄찬영
- Keywords
- Stock liquidity; Corporate investment; Financial constraints
- Issue Date
- 2017-04
- Publisher
- ELSEVIER SCIENCE INC
- Citation
- REVIEW OF FINANCIAL ECONOMICS, v. 33, page. 1-11
- Abstract
- We document that corporate investment contributes to stock liquidity. This study demonstrates a positive relationship between abnormal corporate investment and stock liquidity in the cross-section. Moreover, stock liquidity improves more apparently for firms with financial constraints. Our robustness check confirms that the existing regularities cannot explain the current finding. This analysis suggests that corporate investment decreases the risk of a firm and that a change in the risk affects the behavior of a market maker, leading to an increase in stock liquidity. (C) 2017 Elsevier Inc. All rights reserved.
- URI
- https://onlinelibrary.wiley.com/doi/abs/10.1016/j.rfe.2017.02.001https://repository.hanyang.ac.kr/handle/20.500.11754/113835
- ISSN
- 1058-3300; 1873-5924
- DOI
- 10.1016/j.rfe.2017.02.001
- Appears in Collections:
- GRADUATE SCHOOL OF BUSINESS[S](경영전문대학원) > ETC
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