Zhang, Lijie, Yong Li, Zhuo Huang and Xinhan Chen. 2017. “Stock liquidity and firm value: evidence from China.” Applied Economics Letters. Forthcoming: .
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.