Stock liquidity and, investment opportunities: Evidence from index additons

被引：73

作者：

Becker-Blease, John R. ^{[1
]}

Paul, Donna L. ^{[1
]}

机构：

[1] Washington State Univ, Pullman, WA 99164 USA

来源：

FINANCIAL MANAGEMENT | 2006年 / 35卷 / 03期

关键词：

D O I：

10.1111/j.1755-053X.2006.tb00146.x

中图分类号：

F8 [财政、金融];

学科分类号：

0202 ;

摘要：

We examine the relation between stock liquidity and investment opportunities in a sample of firms experiencing an exogenous liquidity shock. We find a positive relation between changes in capital expenditures and changes in stock liquidity, indicating that stock liquidity influences corporate investment decisions. This relation is robust to alternative measures of growth opportunities, and is consistent with a liquidity premium in equity returns. That is, an increase in liquidity effectively expands the set of positive NPV projects because it reduces the cost of capital. The results suggest that liquidity-enhancing events benefit shareholders by increasing the pool of viable growth opportunities.

引用

页码：35 / 51

页数：17

共 20 条

[1] Illiquidity and stock returns: cross-section and time-series effects [J].