The effect of stock liquidity on investment efficiency under financing constraints and asymmetric information: Evidence from the United States

Autor:	Dharmendra Naidu, Heidi Quah, Janto Haman
Rok vydání:	2020
Předmět:	Finance 050208 finance business.industry Investment efficiency 05 social sciences Economics Econometrics and Finance (miscellaneous) Stock liquidity Business risks Information asymmetry Accounting 0502 economics and business External financing 050207 economics business
Zdroj:	Accounting & Finance. 61:2109-2150
ISSN:	1467-629X 0810-5391
DOI:	10.1111/acfi.12656
Popis:	We examine whether the association between stock liquidity and investment efficiency is more pronounced for firms with more financial constraints and information asymmetry problems. The results show that the effect of higher stock liquidity on lowering under (over)‐investment is more pronounced for firms with more financial constraints and information asymmetry problems as proxied by younger and higher business risk firms, respectively. We also find similar results for firms with lower institutional ownership, more external financing dependence and higher idiosyncratic risks. The findings collectively suggest that the effect of stock liquidity in our setting is more pervasive for firms with more financial constraints and information asymmetry problems.
Databáze:	OpenAIRE
Externí odkaz:	https://explore.openaire.eu/search/publication?articleId=doi_________::d26381fcc7be2388f5faec66fcfe2de7 https://doi.org/10.1111/acfi.12656 Zobrazit plný text záznamu Plný text