Stock Market Liquidity in Chile

Luis Brandão-Marques
Authors registered in the RePEc Author Service: Luis Brandao Marques

No 2016/223, IMF Working Papers from International Monetary Fund

Abstract: Chile has a large but relatively illiquid stock market. Global factors such as global risk appetite and monetary policy in advanced economies are key cyclical determinants of liquidity in Chilean equities. Evidence from a cross-section of emerging markets suggests strong protection of minority shareholders can help improve stock market liquitidity. Currently, illiquid in Chilean may have to pay 3½ percent more as cost of equity. Corporate governance should be improved, namely through the adoption of a stewardship code.

Keywords: WP; market liquidity; liquidity regime; investor protection; corporate governance; liquidity premium; liquidity service; liquidity cost; aggregate liquidity; Liquidity; Stock markets; Stocks; Liquidity management; Global (search for similar items in EconPapers)
Pages: 29
Date: 2016-11-16
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Citations: View citations in EconPapers (5)

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