Artikel
Stock liquidity and capital structure: International evidence
Relying on the assumption that equity market provides useful information for firm decision, this study examines the effect of stock liquidity on corporate capital structure decision. We also analyze whether this effect varies according to country-level institutional environments. Using a comprehensive international dataset of 19,939 firms across 41 countries over 2000-2010, the paper offers two key findings. First, firms with higher stock market liquidity tend to have lower leverage. Second, countries with strong institutional environments are more likely to have a weaker (negative) relationship between stock market liquidity and leverage. These results are robust to different liquidity measurement and subsamples.
- Language
-
Englisch
- Bibliographic citation
-
Journal: Cogent Economics & Finance ; ISSN: 2332-2039 ; Volume: 7 ; Year: 2019 ; Issue: 1 ; Pages: 1-20 ; Abingdon: Taylor & Francis
- Classification
-
Wirtschaft
Information and Market Efficiency; Event Studies; Insider Trading
Corporate Finance and Governance: General
- Subject
-
capital decision
liquidity
institutional environment
leverage
- Event
-
Geistige Schöpfung
- (who)
-
Dang Tùng Lâm
Hai Ly Ho
Chi Dzung Lam
Thanh Thao Tran
Xuan Vinh Vo
- Event
-
Veröffentlichung
- (who)
-
Taylor & Francis
- (where)
-
Abingdon
- (when)
-
2019
- DOI
-
doi:10.1080/23322039.2019.1587804
- Handle
- Last update
-
10.03.2025, 11:43 AM CET
Data provider
This object is provided by:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Artikel
Associated
- Dang Tùng Lâm
- Hai Ly Ho
- Chi Dzung Lam
- Thanh Thao Tran
- Xuan Vinh Vo
- Taylor & Francis
Time of origin
- 2019
Other Objects (12)
Stock liquidity and stock price crash risk: Evidence from Vietnam
Can liquidity explain dividends?
Funding liquidity and bank lending
Liquidity-adjusted CAPM: An empirical analysis on Indian stock market
Capital structure and profitability: Panel data evidence of private banks in Ethiopia
The impact of board gender diversity on capital structure: Evidence from the Ethiopian banking sector
Foreign equity flows and stock market liquidity in Kenya
Analysts and stock liquidity: Global evidence
Myopia, liquidity constraints and private consumption: The case of Cote d'Ivoire
Bank capital and bank stability: The mediating role of liquidity creation and moderating role of asset diversification
The effect of credit risk, liquidity risk and bank capital on bank profitability: Evidence from an emerging market
Firm-specific and macroeconomic determinants of commercial banks liquidity in Ethiopia: Panel data approach
Stock liquidity and stock price crash risk: Evidence from Vietnam
Can liquidity explain dividends?
Funding liquidity and bank lending
Liquidity-adjusted CAPM: An empirical analysis on Indian stock market
Capital structure and profitability: Panel data evidence of private banks in Ethiopia
The impact of board gender diversity on capital structure: Evidence from the Ethiopian banking sector
Foreign equity flows and stock market liquidity in Kenya
Analysts and stock liquidity: Global evidence
Myopia, liquidity constraints and private consumption: The case of Cote d'Ivoire
Bank capital and bank stability: The mediating role of liquidity creation and moderating role of asset diversification
The effect of credit risk, liquidity risk and bank capital on bank profitability: Evidence from an emerging market
Firm-specific and macroeconomic determinants of commercial banks liquidity in Ethiopia: Panel data approach
Stock liquidity and stock price crash risk: Evidence from Vietnam
Can liquidity explain dividends?
Funding liquidity and bank lending
Liquidity-adjusted CAPM: An empirical analysis on Indian stock market
Capital structure and profitability: Panel data evidence of private banks in Ethiopia
The impact of board gender diversity on capital structure: Evidence from the Ethiopian banking sector
Foreign equity flows and stock market liquidity in Kenya
Analysts and stock liquidity: Global evidence
Myopia, liquidity constraints and private consumption: The case of Cote d'Ivoire
Bank capital and bank stability: The mediating role of liquidity creation and moderating role of asset diversification
The effect of credit risk, liquidity risk and bank capital on bank profitability: Evidence from an emerging market