Does brand capital improve stock liquidity? Evidence from China

Muhammad Ansar Majeed, Irfan Ullah, Samia Tariq and Tanveer Ahsan
Additional contact information
Muhammad Ansar Majeed: ZJSU - Zhejiang Gongshang University [Hangzhou]
Irfan Ullah: Jiangxi Normal University [Nanchang]
Tanveer Ahsan: ESC [Rennes] - ESC Rennes School of Business

Post-Print from HAL

Abstract: This study investigates how brand capital affects stock market liquidity. We posit that brand capital improves the corporate information environment, enhances competitiveness, and increases firm visibility ultimately resulting in higher stock liquidity. Using a sample of Chinese listed firms, we find a positive relationship between brand capital and stock liquidity. Further analyses show that the effect of brand capital is more pronounced for firms with low media coverage and analyst following. Moreover, the effect of brand capital on stock liquidity is significant for non‐state‐owned enterprises. Our mechanism analyses also confirm that brand capital plays an informational role by effectively mitigating information asymmetry and adverse selection, leading to higher stock liquidity. Our study provides the first evidence of the nexus between brand capital and stock liquidity and extends the literature on the capital market implications of brand capital.

Date: 2023-12-17
References: Add references at CitEc
Citations: View citations in EconPapers (2)

Published in International Journal of Finance and Economics, 2023, ⟨10.1002/ijfe.2918⟩

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

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:hal:journl:hal-04636924

DOI: 10.1002/ijfe.2918

Access Statistics for this paper

More papers in Post-Print from HAL
Bibliographic data for series maintained by CCSD ().