Common institutional ownership and commonality in liquidity: Evidence from China

Xiaoyu Chen

Accounting and Finance, 2025, vol. 65, issue 2, 1635-1668

Abstract: This study investigates the impact of common institutional ownership on commonality in liquidity. We find that common institutional ownership reduces commonality in liquidity through synergistic governance, which is driven by the economy of scale and externality of common ownership. However, the negative relationship is weakened by exit threats of common ownership, emphasising the important role of active investor monitoring. We show that information transparency is the primary channel through which common institutional ownership reduces liquidity commonality. Moreover, the impacts are more pronounced for large‐cap stocks, and firms with high institutional ownership stability and high stock pricing efficiency.

Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
https://doi.org/10.1111/acfi.13380

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bla:acctfi:v:65:y:2025:i:2:p:1635-1668

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=0810-5391

Access Statistics for this article

Accounting and Finance is currently edited by Robert Faff

More articles in Accounting and Finance from Accounting and Finance Association of Australia and New Zealand Contact information at EDIRC.
Bibliographic data for series maintained by Wiley Content Delivery ().