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.
引用
收藏
页数：28
相关论文
共 50 条
[31]   Stock liquidity and firm value: evidence from China [J].
Zhang, Lijie ;
Li, Yong ;
Huang, Zhuo ;
Chen, Xinhan .
APPLIED ECONOMICS LETTERS, 2018, 25 (01) :47-50
[32]   Government ownership and stock liquidity: Evidence from China [J].
Ding, Mingfa ;
Suardi, Sandy .
EMERGING MARKETS REVIEW, 2019, 40
[33]   Corporate ESG rating and stock market liquidity: Evidence from China [J].
He, Feng ;
Feng, Yaqian ;
Hao, Jing .
ECONOMIC MODELLING, 2023, 129
[34]   Non-Tradable Share Reform, Liquidity, and Stock Returns in China [J].
Hung, Chi-Hsiou D. ;
Chen, Qiuliang ;
Fang, Victor .
INTERNATIONAL REVIEW OF FINANCE, 2015, 15 (01) :27-54
[35]   Effects on Expectations of the Split Share Reform on Stock Market in China [J].
Zhang, Ge ;
Li, Handong .
ICPOM2008: PROCEEDINGS OF 2008 INTERNATIONAL CONFERENCE OF PRODUCTION AND OPERATION MANAGEMENT, VOLUMES 1-3, 2008, :868-871
[36]   Impact of split share structure reform on capital structures: empirical evidence from China's listed companies [J].
Zhang, Hong ;
Gao, Shuai ;
Yang, Fei .
APPLIED ECONOMICS, 2016, 48 (13) :1172-1181
[37]   Dividend payout policies in the pre and post split share structure reform in China [J].
Zhao, Yufan ;
Ng, Sin Huei .
COGENT ECONOMICS & FINANCE, 2021, 9 (01)
[38]   Blockholders and corporate governance: evidence from China's split-share-structure reform [J].
Qian, Xiaolin ;
Tam, Lewis .
REVIEW OF ACCOUNTING AND FINANCE, 2021, 20 (01) :53-83
[39]   The nonlinear effect of shareholder ownership structure on a firm's cash holdings: Type I and Type II agency problem perspectives in China's split-share reform [J].
Huang, Bingbing ;
Zhang, Xuehui ;
Bi, Qian .
INTERNATIONAL REVIEW OF ECONOMICS & FINANCE, 2022, 77 :493-504
[40]   Split Share Structure Reform, corporate governance, and the foreign share discount puzzle in China [J].
Hou, Wenxuan ;
Lee, Edward .
EUROPEAN JOURNAL OF FINANCE, 2014, 20 (7-9) :703-727
12345