Corporate Governance and Stock Market Liquidity

2016 ◽  
Vol 5 (3) ◽  
Author(s):  
Manjit Kaur Sidhu
Keyword(s):  
Corporate Governance ◽  
Stock Market ◽  
Information Disclosure ◽  
Market Liquidity ◽  
Manufacturing Companies ◽  
Governance Practices ◽  
Stock Market Liquidity ◽  
The Relationship ◽  
Corporate Information

Corporate governance has an impact on both quantity and quality of corporate information disclosure which affects the level of information asymmetry and thus impacts the changes in market liquidity of stock. This article attempts to discern the relationship between corporate governance and the stock market liquidity of Indian manufacturing companies included in the S&P BSE 100 Index during the period 2009-2012 by invoking pooled regression model. The empirical results support corporate governance implications of stock market liquidity as measured by Amivest measure (1985), that is, better governed companies has higher liquidity. The results of the present study are in support of arguments made by Chung, Elder, and Kim (2010), i.e., firms may improve stock market liquidity by adopting corporate governance practices that mitigate informational asymmetries.

Corporate Governance and Stock Market Liquidity

2019 ◽  
Author(s):  
Erick Rading Outa ◽  
Nelson Maina Waweru ◽  
Peterson K Ozili
Keyword(s):  
Corporate Governance ◽  
Stock Market ◽  
Market Liquidity ◽  
Stock Market Liquidity

scholarly journals Performance, corporate governance and new regulation

2017 ◽  
Vol 9 (18) ◽  
Author(s):  
Heriberto García
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Financial Market ◽  
Information Disclosure ◽  
Potential Growth ◽  
Listed Firms ◽  
Risk Return ◽  
Corporate Governance Code ◽  
Governance Practices ◽  
The Relationship

Abstract. After the adoption of the Corporate Governance Code (Code) in Mexico, many companies increased financial performance and the leveraged during the following five years; we investigated the effect of how those firms improved the corporate governance practices and how was translated into better risk return company. We analyzed how and where better corporate governance practices affects performance and what was the relationship with Transparency, New Regulation and Governance Practices. Also we explored the gaps between transparency and information disclosure of Mexican Firms listed in U.S stockexchange and non U.S listed firms our findings were related to the potential growth of the Mexico Financial Market, Law and Finance.Keywords: corporate governance, financial performance, regulationResumen. Después de la adopción del Código de Gobierno Corporativo en México, algunas compañías incrementaron el desempeño financiero y el uso de deuda durante los siguientes cinco anos, nuestra investigación se enfoca en como dichas compañías mejoraron sus prácticas de gobierno corporativo y como estas prácticas se han traducido en un mejor relación de riesgo y rendimiento. En esta investigación exploramos cómo y en dónde mejores prácticas de gobierno corporativo afectan el desempeño y qué relación tiene con laTransparencia, Nuevas Regulaciones y prácticas de Gobierno Corporativo. Con lo anterior también identificamos aquellas compañías que cotizan fuera de México para identificar potenciales diferencias en dichas prácticas.Palabras clave: desempeño financiero, gobierno corporativo, regulación

Corporate Governance and Liquidity

2010 ◽  
Vol 45 (2) ◽  
pp. 265-291 ◽  
Author(s):  
Kee H. Chung ◽  
John Elder ◽  
Jang-Chul Kim
Keyword(s):  
Corporate Governance ◽  
Stock Market ◽  
Alternative Model ◽  
Empirical Relation ◽  
Price Impact ◽  
Market Liquidity ◽  
Lower Probability ◽  
Market Quality ◽  
Stock Market Liquidity ◽  
Liquidity Measures

AbstractWe investigate the empirical relation between corporate governance and stock market liquidity. We find that firms with better corporate governance have narrower spreads, higher market quality index, smaller price impact of trades, and lower probability of information-based trading. In addition, we show that changes in our liquidity measures are significantly related to changes in the governance index over time. These results suggest that firms may alleviate information-based trading and improve stock market liquidity by adopting corporate governance standards that mitigate informational asymmetries. Our results are remarkably robust to alternative model specifications, across exchanges, and to different measures of liquidity.

scholarly journals Earnings quality and governance quality: A comparative analysis between traditional and new Brazilian capital markets

2016 ◽  
Vol 14 (1) ◽  
pp. 605-610
Author(s):  
Helena Isidro ◽  
Maria Manuela Martins ◽  
Ilídio Tomás Lopes
Keyword(s):  
Corporate Governance ◽  
Financial Reporting ◽  
Positive Relationship ◽  
Earnings Quality ◽  
Traditional Market ◽  
Governance Practices ◽  
Governance Quality ◽  
The Relationship ◽  
The Empirical Analysis

This research focuses on the relationship between the quality of financial reporting and the level of corporate governance of Brazilian firms, particularly between New Market and Traditional Market. We measure earnings quality based on a widely used accruals model. Governance quality is represented by the type of market the firms chooses to be listed in. Firms that opt for the New Market must apply more stringent governance principles. The empirical analysis shows evidence of a positive relationship between the quality of financial reporting and the level of corporate governance. Thus, firms listed on the New Market characterized by better governance practices evidence better quality financial reporting.

scholarly journals The Role of Ownership Structure and Board Characteristics in Stock Market Liquidity

2021 ◽  
Vol 9 (4) ◽  
pp. 74
Author(s):  
Wajih Abbassi ◽  
Ahmed Imran Hunjra ◽  
Suha Mahmoud Alawi ◽  
Rashid Mehmood
Keyword(s):  
Corporate Governance ◽  
Stock Market ◽  
Ownership Structure ◽  
Positive Impact ◽  
Generalized Method Of Moments ◽  
Fixed Effect Model ◽  
Market Liquidity ◽  
Board Characteristics ◽  
Stock Market Liquidity ◽  
The Impact

Corporate governance plays a significant role in the value of shareholders and share prices, hence stock market liquidity is affected. Previous research has mainly focused on the issue in developed markets, whereas in developing countries there is a need to analyze the influence of corporate governance on stock market liquidity. Therefore, the present study aims to examine the impact of ownership structure and board characteristics on stock market liquidity of non-financial firms of South Asian countries such as Pakistan, Sri Lanka, Bangladesh, and India. The data in the study is collected from the DataStream for the 2011–2020 period. The study uses a fixed effect model for the analysis of the data and hypotheses testing and generalized method of moments (GMM) is used to check the robustness of the results. The findings of the study indicate that institutional ownership, board size, board independence, and CEO duality have a significant and positive impact on stock market liquidity, whereas managerial ownership has a significant and negative effect on stock market liquidity.

Corporate Governance, Legal System, and Stock Market Liquidity: Evidence Around the World

2012 ◽  
Vol 41 (6) ◽  
pp. 686-703 ◽  
Author(s):  
Kee H. Chung ◽  
Joon-Seok Kim ◽  
Kwangwoo Park ◽  
Taeyoon Sung
Keyword(s):  
Corporate Governance ◽  
Stock Market ◽  
Legal System ◽  
Market Liquidity ◽  
The World ◽  
Stock Market Liquidity
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