|
|
|
|
||||
|
||||
Ownership Level, Ownership Concentration and LiquidityAmir RubinSimon Fraser University (SFU) - Beedie School of Business; Interdisciplinary Center (IDC) Herzliyah Journal of Financial Markets, Vol. 10, pp. 219-248, 2007 Abstract: We examine the link between the liquidity of a firm's stock and its ownership structure, specifically, how much of the firm's stock is owned by insiders and institutions, and how concentrated is their ownership. We find that the liquidity-ownership relation is mostly driven by institutional ownership rather than insider ownership. Importantly, liquidity is positively related to total institutional holdings but negatively related to institutional blockholdings. This finding is consistent with the hypothesis that while the level of institutional ownership proxies for trading activity, the concentration of such ownership proxies for adverse selection.
Keywords: Ownership, concentration, liquidity, adverse selection, trading JEL Classification: G12, G32 Accepted Paper SeriesDate posted: August 15, 2007Suggested Citation |
|
||||||||||||||
© 2013 Social Science Electronic Publishing, Inc. All Rights Reserved.
FAQ
Terms of Use
Privacy Policy
Copyright
This page was processed by apollo2 in 0.375 seconds
