haku: @indexterm liquidity / yhteensä: 315
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| Tekijä: | Fang, V. W. Noe, T. H. Tice, S. |
| Otsikko: | Stock market liquidity and firm value |
| Lehti: | Journal of Financial Economics
2009 : OCT, VOL 94:1, p. 150-169 |
| Asiasana: | stock markets liquidity company performance feedback control compensation |
| Kieli: | eng |
| Tiivistelmä: | The purpose of the article is to examine the effect of stock liquidity on firm performance. According to the authors, when measuring with market-to-book ratio, liquid stocks predict better performance for companies. To further examine the causality of this relationship, the authors study an exogenous shock to liquidity (decimalization of stock trading). The study reveals that even a small increase in liquidity does boost the firm performance. Liquidity is found to have a positive effect on performance because it increases the information content of market prices and managerial compensation bound to performance. |
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