TY - JOUR
T1 - Liquidity, ownership concentration, corporate governance, and firm value
T2 - Evidence from Thailand
AU - Prommin, Panu
AU - Jumreornvong, Seksak
AU - Jiraporn, Pornsit
AU - Tong, Shenghui
PY - 2016/11/1
Y1 - 2016/11/1
N2 - 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.
AB - 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.
UR - http://www.scopus.com/inward/record.url?scp=84977674657&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=84977674657&partnerID=8YFLogxK
U2 - 10.1016/j.gfj.2016.06.006
DO - 10.1016/j.gfj.2016.06.006
M3 - Article
AN - SCOPUS:84977674657
SN - 1044-0283
VL - 31
SP - 73
EP - 87
JO - Global Finance Journal
JF - Global Finance Journal
ER -