Skip to main content

Error message

Please set which field you are using for counting results in the tagadelic display.

2018-06-30 | Peer Reviewed

Stock Liquidity and Firm Value: Evidence from China

Lijie Zhang, Yong Li, Zhuo Huang & Xinhan Chen (2018) Stock liquidity and firm value: evidence from China, Applied Economics Letters, 25:1, 47-50
Download reference Doi:10.1080/13504851.2017.1293779

Empirical evidence for the effect of stock liquidity on firm value is limited and mixed due to a severe endogeneity problem. This article adds to the literature on this topic by providing new empirical evidence using the nontradable share reform in China as a quasi-natural experiment. Our results show that higher stock liquidity can lead to significant firm value improvement.