The Effect of Stock Liquidity on Corporate Risk-Taking

被引：10

作者：

Hsu, Charles ^{[1
]}

Ma, Zhiming ^{[2
]}

Wu, Liansheng ^{[2
]}

Zhou, Kaitang ^{[3
]}

机构：

[1] Hong Kong Univ Sci & Technol, Kowloon, Hong Kong, Peoples R China

[2] Peking Univ, Beijing, Peoples R China

[3] Wuhan Univ, Wuhan, Peoples R China

来源：

JOURNAL OF ACCOUNTING AUDITING AND FINANCE | 2020年 / 35卷 / 04期

关键词：

stock liquidity; risk-taking; cost of capital; pay-for-performance sensitivity; split share structure reform; MARKET LIQUIDITY; CEO COMPENSATION; INCENTIVES; GOVERNANCE; PERFORMANCE; DIVERSIFICATION; PRIVATIZATION; SENSITIVITY; INVESTMENT; THREATS;

D O I：

10.1177/0148558X18798231

中图分类号：

F8 [财政、金融];

学科分类号：

0202 ;

摘要：

This study examines the effect of stock liquidity on corporate risk-taking behavior. We find that stock liquidity has a positive and significant effect on corporate risk-taking. We find consistent results when we use the split share structure reform (SSSR) in China as an exogenous shock to stock liquidity. We also investigate the channels through which stock liquidity affects risk-taking and find that increases in stock liquidity lower the cost of capital and increase the pay-for-performance sensitivity of managers. Finally, we conduct cross-sectional tests to rule out privatization as an alternative explanation for our results. Our study sheds light on the real effects of stock liquidity and contributes to the understanding of capital market development.

引用

页码：748 / 776

页数：29

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