Investor Protection and the Value Impact of Stock Liquidity

Tao Huang, Fei Wu, Jing Yu, Bohui Zhang

Research output: Contribution to journalArticle

Abstract

This paper investigates the effect of investor protection on the value impact of stock liquidity. Using a sample of rms from 40 countries for the period between 1996 and 2010, we show that investor protection is positively associated with the value impact of stock liquidity. This association is robust to the difference-in-differences approach based on a natural experiment. Further evidence shows that the positive effect of home country investor protection the liquidity-valuation association attenuates in countries with globally integrated capital markets.
Original languageEnglish
JournalJournal of International Business Studies
DOIs
Publication statusAccepted/In press - 11 Oct 2018

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Experiments
Liquidity
Investor protection
Financial markets
Integrated
Natural experiment
Capital markets
Difference-in-differences
Home country

Cite this

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Investor Protection and the Value Impact of Stock Liquidity. / Huang, Tao; Wu, Fei; Yu, Jing; Zhang, Bohui .

In: Journal of International Business Studies, 11.10.2018.

Research output: Contribution to journalArticle

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