Stock Liquidity and Firm Value: Evidence from a Policy Experiment in India

2018 ◽  
Vol 20 (1) ◽  
pp. 215-224
Author(s):  
Mohammad Shameem Jawed ◽  
Kiran Kumar Kotha
Keyword(s):  
Firm Value ◽  
Stock Liquidity ◽  
Policy Experiment

scholarly journals ANALISIS PENGARUH LIKUIDITAS SAHAM TERHADAP NILAI PERUSAHAAN MELALUI KEPUTUSAN MANAJEMEN KEUANGAN (STUDI PADA PERUSAHAAN LQ45 DI BURSA EFEK INDONESIA, PERIODE 2016 - 2018)

2020 ◽  
Vol 7 (1) ◽  
Author(s):  
Giovanni Edward Margali ◽  
Marjam M. Mangantar ◽  
Ivonne S. Saerang
Keyword(s):  
Indirect Effect ◽  
Financial Management ◽  
Firm Value ◽  
Stock Exchange ◽  
Investment Decisions ◽  
Market Liquidity ◽  
Company Performance ◽  
Management Decisions ◽  
Stock Liquidity ◽  
Dividend Policies

LQ 45 is one of the indices on the Indonesia Stock Exchange (IDX), where indexes are obtained by calculating with valuations such as liquidity, in the sense. There are compelling reasons to think that market liquidity will affect company performance. Because of the level of selling power of these shares, it plays a central role in corporate governance, approval and performance. This research itself wants to see the effect of direct liquidity on firm value and the indirect effect of liquidity on firm value by moderating financial management decisions regarding investment decisions, dividend policies and purchasing decisions.In this study,the researchers found that stock liquidity directly affected the value of the company, and stock liquidity did not affect financial management decisions (investment decisions, dividend policies and funding decisions) which would later have an indirect effect on firm value.Keywords : stock liquidity, investment decisions, dividend policy, funding decisions, company value.

LIQUIDITY AND FIRM VALUE IN AN EMERGING MARKET

2019 ◽  
Vol 64 (02) ◽  
pp. 365-376 ◽  
Author(s):  
JONATHAN BATTEN ◽  
XUAN VINH VO
Keyword(s):  
Firm Performance ◽  
Stock Market ◽  
Firm Value ◽  
Stock Exchange ◽  
Emerging Market ◽  
Developed Countries ◽  
Market Liquidity ◽  
Ho Chi Minh City ◽  
Stock Liquidity ◽  
Negative Relation

This paper investigates the link between stock market liquidity and firm value in an important emerging market, Vietnam. Specially, we examine this relationship using a sample of firms listed on the Ho Chi Minh City stock exchange for the period 2006–2014. We show that there is a negative relation between liquidity and firm value. This outcome is contrary to previous results for many developed countries. Further, we demonstrate that this result may be explained by differences in leverage effects and pricing-based theories, where stock liquidity influences firm performance via an illiquidity premium or mispricing.

Stock Liquidity and Firm Value in the Time of COVID-19 Pandemic

2021 ◽  
Vol 57 (6) ◽  
pp. 1578-1591
Author(s):  
Ping Zhang ◽  
Jieying Gao ◽  
Xingchao Li
Keyword(s):  
Firm Value ◽  
Stock Liquidity

Credit Default Swaps and Firm Value

2018 ◽  
Vol 53 (3) ◽  
pp. 1227-1259 ◽  
Author(s):  
Rajesh Narayanan ◽  
Cihan Uzmanoglu
Keyword(s):  
Firm Value ◽  
Cost Of Capital ◽  
Credit Default Swaps ◽  
Cash Flows ◽  
Stock Liquidity ◽  
Credit Quality ◽  
Credit Default ◽  
Incremental Information ◽  
The Cost ◽  
Free Cash Flows

This article provides evidence that firm value declines when credit default swaps (CDSs) are initiated and that the effect is greater when CDS trading activity is higher. This decline, which arises from an increase in the cost of capital as opposed to a decrease in free cash flows, traces to a deterioration in the firm’s credit quality and stock liquidity. Firm value declines less when CDS trading is likely to produce incremental information, suggesting that CDS trading has informational benefits for firm value. However, the evidence does not indicate that firm value increases because CDS availability facilitates investments.

Stock liquidity and firm value: evidence from China

2017 ◽  
Vol 25 (1) ◽  
pp. 47-50
Author(s):  
Lijie Zhang ◽  
Yong Li ◽  
Zhuo Huang ◽  
Xinhan Chen
Keyword(s):  
Firm Value ◽  
Stock Liquidity

scholarly journals The impact of internationalisation on stock liquidity and volatility: Evidence from the Johannesburg Stock Exchange

2018 ◽  
Vol 11 (1) ◽  
Author(s):  
Kudakwashe J. Chipunza ◽  
Kerry McCullough
Keyword(s):  
Risk Premium ◽  
Firm Value ◽  
Trading Volume ◽  
Cost Of Capital ◽  
Stock Exchange ◽  
Volatility Risk ◽  
Stock Liquidity ◽  
Risk Premiums ◽  
Significant Difference ◽  
The Impact

Maximising firm value remains a key tenet of corporate managers. Firms with lower illiquidity and volatility attract lower risk premiums, and these are associated with a lower cost of capital and higher firm value. Internationalisation is one avenue purported to provide liquidity and volatility benefits – possibly lowering both liquidity and volatility risk premiums. This study investigated whether South African domiciled stocks experience a surge in liquidity and/or decline in volatility subsequent to internationalisation. The findings show that internationalisation resulted in a surge in liquidity, and this increase was persistent as suggested by the trading volume and Amihud illiquidity measures of stock liquidity; however, the turnover measure indicated that such liquidity gains were temporary. Similarly, volatility declines after internationalisation were temporary. There was inconclusive evidence to show that internationalised stocks had higher liquidity relative to purely domestic shares, and no statistically significant difference between the volatility of internationalised and purely domestic shareholders’ equity was noted. There is only weak evidence to support internationalisation as a route for lowering cost of capital via a reduction in the liquidity risk premium.

Pengaruh Kinerja Keuangan Dan Corporate Social Responsibility (CSR) Terhadap Nilai Perusahaan Perbankan Di Bursa Efek Indonesia

2018 ◽  
Vol 26 (1) ◽  
pp. 95-111
Author(s):  
Sulastiningsih Sulastiningsih ◽  
Rizka Imanita Sholihati
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Financial Performance ◽  
Firm Value ◽  
Research Method ◽  
Quantitative Research ◽  
Annual Report ◽  
Stock Exchange ◽  
Secondary Data ◽  
Corporate Social

This study aims to determine whether the financial performance measured by using CAR, ROA, LDR, BOPO, and CSR can affect the value of banking companies as measured by using PBV. This study uses secondary data taken from the annual report of banking companies during the year 2012-2016 listed on the Indonesia Stock Exchange. The number of samples of this study as many as 25 banking companies with a total of 125 data. This research method is quantitative research. The results of this study indicate the effect of CAR, ROA, LDR, BOPO, and CSR variables on firm value measured by using PBV in a banking company listed on the Indonesia Stock Exchange. Keywords: CAR, ROA, LDR, BOPO, CSR, PBV

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