Record Details

Stock Liquidity and Frim Investment—Evidence from Chinese Listed Companies*

Kasarinlan: Philippine Journal of Third World Studies

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Field Value
 
Title Stock Liquidity and Frim Investment—Evidence from Chinese Listed Companies*
 
Creator Xiong, Jiacai
 
Description From the perspective of market microstructure, this paper investigates the relationship between stock liquidity, firm investment and capital allocation efficiency. This paper finds that firm investment is positively related to stock liquidity. Moreover, financial constraint, firm growth and risk affect the relationship between firm investment and stock liquidity. In addition, stock liquidity can help firm better utilize investment opportunities, indicated by higher investment and Tobin’ Q sensitivities. We also show that firms with good liquidity can lower the investment and Tobin’s Q sensitivities when there are no good investment opportunities. The findings of this paper indicate that stock liquidity have positive effect on firm investment. Therefore, to strengthen the effectiveness of stock liquidity, the Chinese government should continue to reform ownership structure and corporate governance, strengthen information disclosure and stepped up its crackdown against inside trading.
 
Publisher SCHOLINK INC.
 
Contributor —
 
Date 2016-01-21
 
Type info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
Peer-reviewed Article
 
Format application/pdf
 
Identifier http://www.scholink.org/ojs/index.php/jbtp/article/view/463
10.22158/jbtp.v4n1p25
 
Source Journal of Business Theory and Practice; Vol 4, No 1 (2016); p25
2329-2644
2372-9759
 
Language eng
 
Relation http://www.scholink.org/ojs/index.php/jbtp/article/view/463/437
 
Rights Copyright (c) 2016 Journal of Business Theory and Practice