556
Views
3
CrossRef citations to date
0
Altmetric
Original Articles

Stock liquidity and firm value: evidence from China

, , & ORCID Icon
 

ABSTRACT

Empirical evidence for the effect of stock liquidity on firm value is limited and mixed due to a severe endogeneity problem. This article adds to the literature on this topic by providing new empirical evidence using the nontradable share reform in China as a quasi-natural experiment. Our results show that higher stock liquidity can lead to significant firm value improvement.

JEL CLASSIFICATION:

Acknowledgements

Yong Li gratefully acknowledges the financial support by the Fundamental Research Funds for the Central Universities, and the Research Funds of Renmin University of China (Grant number :14XNI005).

Disclosure statement

No potential conflict of interest was reported by the authors.

Notes

1 CSMAR (http://www.gtafe.com) is a data service provider in China aimed at providing stock market, bond market and macro economy data for education.

2 Wind (http://www.wind.com.cn) is a commercial data provider in China, whose database covers all financial sectors in China.

3 RESSET (http://www2.resset.cn/cn/) is another data provider in China for education purpose.

Additional information

Funding

This work was supported by the National Natural Science Foundation of China [71671004].

Reprints and Corporate Permissions

Please note: Selecting permissions does not provide access to the full text of the article, please see our help page How do I view content?

To request a reprint or corporate permissions for this article, please click on the relevant link below:

Academic Permissions

Please note: Selecting permissions does not provide access to the full text of the article, please see our help page How do I view content?

Obtain permissions instantly via Rightslink by clicking on the button below:

If you are unable to obtain permissions via Rightslink, please complete and submit this Permissions form. For more information, please visit our Permissions help page.