Liquidity, Ownership Concentration, Corporate Governance, and Firm Value: Evidence from Thailand
41 Pages Posted: 15 Jun 2016
Date Written: June 14, 2016
We examine the interactions among ownership structure, liquidity, and corporate governance in an important emerging market. The results suggest that firms with more concentrated ownership experience significantly lower stock liquidity. Large shareholders are assumed to possess private information, leading to information asymmetry and thus a higher adverse selection cost. As a result, higher ownership concentration is associated with less liquidity. Nevertheless, there is no evidence that corporate governance plays a significant role in the relationship between ownership and liquidity in Thailand.
Keywords: ownership, ownership structure, liquidity, Thailand, emerging markets
JEL Classification: G34, G12
Suggested Citation: Suggested Citation