Institutional Ownership and Stock Liquidity: International Evidence

2018 ◽  
Vol 47 (1) ◽  
pp. 21-53 ◽  
Author(s):  
Tung Lam Dang ◽  
Thanh Huong Nguyen ◽  
Nguyen Tram Anh Tran ◽  
Thi Thuy Anh Vo
Keyword(s):  
Institutional Ownership ◽  
Stock Liquidity ◽  
International Evidence

scholarly journals Leverage Keuangan Dan Likuiditas Saham Perusahaan Manufaktur Yang Terdaftar Di Bursa Efek Jakarta

2008 ◽  
Vol 1 (3) ◽  
Author(s):  
I Made Sudana ◽  
Nurul Intan
Keyword(s):  
Multivariate Regression ◽  
Institutional Ownership ◽  
Financial Leverage ◽  
Return On Assets ◽  
Control Variables ◽  
Stock Liquidity ◽  
Market Capitalization ◽  
Risk Return ◽  
Independent Variable ◽  
And Control

This research focus on the effect of financial leverage on stock liquidity, with control variables included stock risk, return on assets, market capitalization, volume, institutional ownership during 2003-2004. This research used 86 manufacture company that listing in Jakarta Stock Exchange. Analysis method use multivariate regression. The result of partial multivariate regression indicates that financial leverage as independent variable and control variables include stock risk, return on assets, market capitalization, volume, institutional ownership have positive impact on stock liquidity. Independent variable is financial leverage and control variables include return on assets, volume, institutional ownership have significant impact on stock liquidity, while other control variables such as stock risk and market capitalization have not significant impact on stock liquidity. Simultaneously, financial leverage, stock risk, return on assets, market capitalization, volume, institutional ownership have significant impact on stock liquidity. 

Stock liquidity and stock return: an asymmetric impact of institutional ownership approach

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Abbas Ali Daryaei ◽  
Yasin Fattahi
Keyword(s):  
Stock Return ◽  
Market Value ◽  
Institutional Ownership ◽  
Threshold Level ◽  
Stock Liquidity ◽  
Content Type ◽  
Asymmetric Impact ◽  
The Mean ◽  
The Relationship ◽  
Total Market

Purpose This study is primarily aimed at investigating the asymmetric impact of institutional ownership on the relationship between stock liquidity and stock return. It was conducted by testing the hypotheses regarding efficient monitoring and adverse selection from Tehran Stock Exchange (TSE). Design/methodology/approach Using a panel smooth transition regression model and selecting 183 firms for the period from 2009 to 2019 from TSE, this study examined the data to explore the asymmetric impact of institutional ownership on the relationship between stock liquidity and stock return. Findings The results show a positive impact by institutional ownership on the relationship between stock liquidity and stock return in the first regime (threshold level 39%), whereas in the second regime, there is a negative impact by institutional ownership on the relationship between stock liquidity and stock return. Furthermore, the firms were divided into two groups based on the market value. The first group includes those with a market share less than the mean total market value of the sample. The second group includes firms with a market share higher than the mean total market value of the sample (large firms). The results illustrate that the threshold level is 32% and 44% for the first and second groups, respectively. Originality/value The findings of this study suggest that institutional ownership theories require closer inquiry.

Determinants of CEO Pay: A Comparison of ExecuComp and Non-ExecuComp Firms

2010 ◽  
Vol 85 (5) ◽  
pp. 1511-1543 ◽  
Author(s):  
Brian Cadman ◽  
Sandy Klasa ◽  
Steve Matsunaga
Keyword(s):  
Executive Compensation ◽  
Stock Returns ◽  
Institutional Ownership ◽  
Stock Option ◽  
Ownership Concentration ◽  
Positive Relation ◽  
Stock Liquidity ◽  
Compensation Contracts ◽  
Cash Compensation ◽  
Ceo Pay

ABSTRACT: We document that firms included in the ExecuComp database tend to be larger, more complex, followed by more analysts, have greater stock liquidity levels, and have higher total, but less concentrated, institutional ownership than other firms. Based on these differences, we test and find support for three predictions. First, ExecuComp firms rely more heavily on earnings and stock returns in determining CEO cash compensation. Second, the weight on earnings is more sensitive to differences in the extent of growth opportunities for ExecuComp firms. Third, the positive relation between institutional ownership concentration and the value of stock option grants is stronger for ExecuComp firms. Overall, our results suggest that ExecuComp and non-ExecuComp firms operate in different contracting environments that lead to differences in the design of their executive compensation contracts. As a result, care should be taken in extending results based on ExecuComp samples to non-ExecuComp firms.

Cross-Listings and Voluntary Disclosure: International Evidence

2019 ◽  
Vol 4 (2) ◽  
pp. 89-113 ◽  
Author(s):  
Long Chen ◽  
Yashu Dong ◽  
Jeff Ng ◽  
Albert Tsang
Keyword(s):  
Voluntary Disclosure ◽  
Accounting Standards ◽  
Institutional Ownership ◽  
Management Forecasts ◽  
Listed Firms ◽  
International Evidence ◽  
Management Forecast ◽  
Cross Listing ◽  
International Setting ◽  
Foreign Institutional Investors

This paper examines changes in firms' disclosure behavior around cross-listings. Using an international setting, we find significant differences in management forecast likelihood and frequency between cross-listed firms and firms with similar characteristics but that are not cross-listed; particularly when differences in accounting standards between a cross-listed firm's home and target countries are larger. Further, we find that firms choosing to cross-list in target countries with larger accounting standards differences tend to provide more voluntary disclosure during the two years preceding a new cross-listing, rather than during the earlier time periods or the period after cross-listing, and such voluntary disclosure helps firms attract more foreign institutional ownership in their cross-listing target countries. Collectively, our evidence suggests that although differences in accounting standards across countries deter firms' cross-listing activities, cross-listed firms, by providing more management forecasts voluntarily, preemptively alleviate the information disadvantage faced by foreign institutional investors.

scholarly journals Asset Liquidity and Stock Liquidity: International Evidence

2013 ◽  
Vol 41 (3-4) ◽  
pp. 435-468 ◽  
Author(s):  
Charlie Charoenwong ◽  
Beng Soon Chong ◽  
Yung Chiang Yang
Keyword(s):  
Stock Liquidity ◽  
International Evidence ◽  
Asset Liquidity

Impact of Institutional Ownership on Stock Liquidity: Evidence from Karachi Stock Exchange, Pakistan

2018 ◽  
Vol 19 (4) ◽  
pp. 939-951 ◽  
Author(s):  
Muhammad Sadil Ali ◽  
Shujahat Haider Hashmi
Keyword(s):  
Stock Exchange ◽  
Institutional Ownership ◽  
Fixed Effect Model ◽  
Insurance Companies ◽  
Positive Role ◽  
Stock Liquidity ◽  
Listed Firms ◽  
Effect Model ◽  
Efficient Resource ◽  
The Impact

This study empirically investigates the impact of institutional ownership on stock liquidity; we used a sample size of 84 non-financial companies listed on Karachi Stock Exchange (KSE). Data were gathered for the period of 10 years, starting from 2005 to 2014. This study employs turnover ratio to measure stock liquidity while institutional ownership is measured by dividing number of shares kept by institutions from total number of outstanding shares. The fixed effect model shows that the degree of stock liquidity in Pakistani-listed firms tend to significantly increase for the firms where institutions hold a significant amount of share of that particular firm. This study also finds that ownership by bank and investment companies are positively associated with liquidity, while relationship between ownership by insurance companies and stock liquidity is found to be insignificant. Our evidence supports that many but not all institutional investors play a positive role to improve stock liquidity in Pakistani capital market. The results of this study are important for dealers, traders and brokers, in the sense that they can facilitate investors in efficient resource allocation.

scholarly journals Liquidity and Dividend Policy: International Evidence

2010 ◽  
Vol 3 (3) ◽  
pp. 3 ◽  
Author(s):  
Carroll Howard Griffin
Keyword(s):  
Inverse Relationship ◽  
Dividend Policy ◽  
International Level ◽  
Stock Liquidity ◽  
International Evidence

Since the days of Miller and Modigliani, academics have been studying dividend policy. There have been many theories as to why companies declare dividends, under what circumstances investors may prefer dividends to other forms of compensation, and factors that cause dividends to rise. However, the concept of liquidity has until very recently been largely ignored. This paper examines liquidity and dividend policy on the international level to determine what relationship the liquidity of a firm’s stock has on the decision of how much dividend to disburse to investors. It finds that in several specific cases, there is an inverse relationship between stock liquidity and the dividend amount paid. This perhaps would point to dividends indeed at times compensating for lower stock liquidity. 

scholarly journals Stock Market Liquidity And Dividend Policy In Korean Corporations

2017 ◽  
Vol 33 (4) ◽  
pp. 729 ◽  
Author(s):  
Jeong Hwan Lee ◽  
Bohyun Yoon
Keyword(s):  
Financial Markets ◽  
Dividend Policy ◽  
Empirical Studies ◽  
Explanatory Power ◽  
Negative Relationship ◽  
Market Liquidity ◽  
Stock Liquidity ◽  
International Evidence ◽  
Dividend Payments

The liquidity hypothesis predicts a negative relationship between stock liquidity and dividend payout propensity, i.e., a firm will decide to pay dividends to compensate for the liquidity demand of investors. This study comprehensively examines whether the liquidity hypothesis applies to the sample of Korean firms listed in the KOSPI and KOSDAQ markets. The main results of this paper are as follows. First, the dividend policy in Korean firms does not support the liquidity hypothesis, contradictory to the existing empirical studies. Next, the explanatory power of the liquidity hypothesis is even weaker for the KOSDAQ market, inconsistent with international evidence. Finally, even when we focus on the firm-year observations with non-negligible dividend payments, the liquidity hypothesis does not explain the dividend policy of Korean firms either. Our findings significantly contribute to the literature by robustly confirming the very limited role of the liquidity hypothesis for Korean financial markets.  

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