Cultural diversity in ownership and stock liquidity commonality: Evidence from China

Hao Zhang, Xian Luo, Minghui Han and Xiaojuan Liu

Finance Research Letters, 2021, vol. 40, issue C

Abstract: We manually collect the data about the top 10 shareholders of Chinese listed firms and their countries of origin to identify the relationship between cultural diversity in ownership and stock liquidity commonality from 2007 to 2018. We provide evidence that cultural diversity in ownership reduces stock liquidity commonality. Besides, we show that corporate transparency is a key channel through which cultural diversity in ownership reduces liquidity commonality. Our results are robust to endogeneity tests.

Keywords: Cultural diversity in ownership; liquidity commonality; corporate transparency (search for similar items in EconPapers)
Date: 2021
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:40:y:2021:i:c:s1544612320316706

DOI: 10.1016/j.frl.2020.101856

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