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

Panu Prommin, Seksak Jumreornvong, Pornsit Jiraporn and Shenghui Tong

Global Finance Journal, 2016, vol. 31, issue C, 73-87

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.

Keywords: Ownership; Ownership structure; Liquidity; Thailand; Emerging markets (search for similar items in EconPapers)
JEL-codes: G12 G34 (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (17)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:glofin:v:31:y:2016:i:c:p:73-87

DOI: 10.1016/j.gfj.2016.06.006

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