Liquidity, ownership concentration, corporate governance, and firm value: Evidence from Thailand

Panu Prommin, Seksak Jumreornvong, Pornsit Jiraporn, Shenghui Tong

Research output: Contribution to journalArticlepeer-review

20 Scopus citations

Abstract

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.

Original languageEnglish (US)
Pages (from-to)73-87
Number of pages15
JournalGlobal Finance Journal
Volume31
DOIs
StatePublished - Nov 1 2016

All Science Journal Classification (ASJC) codes

  • Finance
  • Economics and Econometrics

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