Top Management Team Educational Background and Stock Liquidity: Evidence from China

Jingyu Wu, Shaun McDowell, Cagri Berk Onuk and Jianing Zhang ()
Additional contact information
Jingyu Wu: College of Business and Public Management, Wenzhou-Kean University, Wenzhou 325060, China
Shaun McDowell: College of Business and Public Management, Wenzhou-Kean University, Wenzhou 325060, China
Cagri Berk Onuk: College of Business and Public Management, Wenzhou-Kean University, Wenzhou 325060, China
Jianing Zhang: College of Business and Public Management, Wenzhou-Kean University, Wenzhou 325060, China

JRFM, 2025, vol. 18, issue 10, 1-36

Abstract: Using a panel of 3515 Chinese listed firms from 2011 to 2023, this study shows that the education level of the top management team (TMT) positively influences firm stock liquidity. The beneficial effect of TMT education on stock liquidity is stronger in settings with lower industry competition, higher information disclosure quality, and bull market periods. Mediation analysis indicates that analyst coverage provides a weak channel through which TMT education affects stock liquidity. Endogeneity concerns are alleviated by reverse causality tests, two-stage least squares regressions, propensity score matching, and generalized method of moments. The results are also robust to alternative liquidity measures and alternative definitions of TMT education. This study offers practical implications for investors, corporate executives, and policymakers seeking to promote market efficiency and liquidity.

Keywords: top management team; educational background; stock liquidity; industry competition; information disclosure; two-stage least squares; China (search for similar items in EconPapers)
JEL-codes: C E F2 F3 G (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.mdpi.com/1911-8074/18/10/564/pdf (application/pdf)
https://www.mdpi.com/1911-8074/18/10/564/ (text/html)

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:gam:jjrfmx:v:18:y:2025:i:10:p:564-:d:1765542

Access Statistics for this article

JRFM is currently edited by Ms. Chelthy Cheng

More articles in JRFM from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().