Ownership level, ownership concentration and liquidity

Rubin, Amir

doi:10.1016/j.finmar.2007.04.002

Cited by 241 publications

(194 citation statements)

References 49 publications

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“…More recently, Heflin and Shaw (2000), Rubin (2007), Chen et al (2007), Kanagaretnam et al (2007) and Chung et al (2010) focused on corporate governance as a mean to enhance stock liquidity. They argue that effective control mechanisms, such as constraining firms to disclose more information and hiring independent directors reduce expropriation risk and increase profitability.…”

Section: Introductionmentioning

confidence: 99%

Does Corporate Governance Affect Stock Liquidity in the Tunisian Stock Market?

Loukil¹,

Yousfi

2012

SSRN Journal

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Abstract:The aim of the current paper is to study the link between the effects of corporate governance on information asymmetry problems and stock liquidity in the Tunisian Stock Market. We use a sample of 49 Tunisian firms listed between 1998 and 2007. Our results show that corporate governance has direct and indirect effects on stock liquidity. Threat of expropriation exerted by family and foreign shareholders discourages reluctant investors, which decreases stock liquidity. In contrast, they invest their capital in State controlled firms.In fact, State is regarded as an effective controller rather than a shareholder. The State involvement in Tunisian firms is considered as state guarantee for investors, which increases stock liquidity. Our results provide evidence that some attributes of corporate governance improve stock liquidity because they reduce information asymmetry.

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Section: Introductionmentioning

confidence: 99%

Does Corporate Governance Affect Stock Liquidity in the Tunisian Stock Market?

Loukil¹,

Yousfi

2012

SSRN Journal

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“…They also found institutional holdings not to have any impact on the spread. Contrastingly, in Rubin's (2007) study, he examined the relationship between firm's stock liquidity and ownership structure -with a focus on how the firm's stock is owned by insiders and institutions, and the level of ownership concentration. His findings revealed that the relationship between liquidity and ownership is largely directed by institutional ownership as opposed to insider ownership.…”

Section: Ownership Structure and Stock Market Liquiditymentioning

confidence: 99%

“…For instance, Kanagaretnam et al (2007), Rubin (2007), and Chung et al (2010) laid emphasis on the role of corporate governance in enhancing stock liquidity. According to them, effective control mechanisms like driving firms to disclose information and hiring independent directors could mitigate the risk of expropriation and enhance profitability.…”

Section: Introductionmentioning

confidence: 99%

“…In widely held companies, the shareholders with large company stakes might incur higher agency costs in their monitoring owing to the superior private managers-investors information. In particular, block shareholders lessen market liquidity because of their access to private information among investors and the market risk increase (Heflin & Shaw, 2000;Rubin, 2007). For instance, Attig et al (2006) indicated that large control rights could trigger poor disclosure among Canadian firms, and this leads to low liquidity owing to the selfish behaviors of ultimate shareholders who hold large shareholdings.…”

Section: Introductionmentioning

confidence: 99%

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Corporate Governance, Ownership Structure and Stock Market Liquidity in Saudi Arabia: A Conceptual Research Framework

Alsahlawi

Ammer

2017

AFR

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This paper aimed to provide a review of the literature concerning the effects of corporate governance and ownership structure on the devices of market microstructure. It provided a clear overview of empirical archival studies in literature regarding the way corporate governance and ownership structure mechanisms influence market liquidity, with focusing on the Saudi institutional setting. It aimed to pinpoint the differences and similarities in empirical outcomes of studies and determine the areas that call for further exploration. On the basis of the thorough review of literature and the theoretical basis, our study proposed a conceptual research framework. The framework is based on the premise that effective corporate governance can lead to enhanced disclosure quality, which in turn, lead to mitigating the information asymmetry and ultimately, enhanced market liquidity. Although theoretical studies argued the presence of the relationship between corporate governance, ownership and liquidity, we find that outcomes from empirical studies are still mixed. Majority of extant studies, with majority in the context of the U.S. firms, provide ambiguous results, making it challenging to reconcile the differences among them. Our paper provides important guidance for both new and experienced researchers, and it has implications for stock exchange authorities in terms of adopting effective regulatory policies and efficient trading systems to tackle information asymmetry.

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“…4 See among others Welker (1995), Heflin et al( 2005 and2007) Brown and Hillegeist (2007) and Chen et al (2007). 5 The extent of disclosure index is yearly index provided by Doing Business.…”

Section: Introductionmentioning

confidence: 99%

Firm’s Information Environment and Stock Liquidity: Evidence from Tunisian Context

Loukil

Yousfi

2010

SSRN Journal

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This paper analyzes the relationship between public disclosure, private information and stock liquidity in the Tunisian market. We use a sample of 41 listed firms in the Tunis Stock Exchange in 2007. First, we find no evidence that there is a relation between public and private information. Second, Tunisian investors do not trust the information disclosed in both annual reports and web sites, consequently it has no effects on stock liquidity, in contrast with private information.

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Ownership level, ownership concentration and liquidity

Cited by 241 publications

References 49 publications

Does Corporate Governance Affect Stock Liquidity in the Tunisian Stock Market?

Does Corporate Governance Affect Stock Liquidity in the Tunisian Stock Market?

Corporate Governance, Ownership Structure and Stock Market Liquidity in Saudi Arabia: A Conceptual Research Framework

Firm’s Information Environment and Stock Liquidity: Evidence from Tunisian Context

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