Impact of ownership concentration, institutional ownership and earnings management on stock market liquidity

Hunjra, Ahmed Imran; Perveen, Uzma; Li, Leon; Chani, Muhammad Irfan; Mehmood, Rashid

doi:10.22495/cocv17i2art7

Cited by 27 publications

(30 citation statements)

References 64 publications

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“…Corporate governance practices play an important role in the functioning of stock markets (Boubaker et al 2019). Stock market liquidity grabs the attention of researchers mainly in emerging markets because market liquidity helps to allocate financial resources efficiently (Hunjra et al 2020c). An increase in the liquidity of stock markets improves the efficiency of stock valuation, and therefore may help to improve the value of a firm.…”

Section: Introductionmentioning

confidence: 99%

The Role of Ownership Structure and Board Characteristics in Stock Market Liquidity

Abbassi

Hunjra

Alawi

et al. 2021

IJFS

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Corporate governance plays a significant role in the value of shareholders and share prices, hence stock market liquidity is affected. Previous research has mainly focused on the issue in developed markets, whereas in developing countries there is a need to analyze the influence of corporate governance on stock market liquidity. Therefore, the present study aims to examine the impact of ownership structure and board characteristics on stock market liquidity of non-financial firms of South Asian countries such as Pakistan, Sri Lanka, Bangladesh, and India. The data in the study is collected from the DataStream for the 2011–2020 period. The study uses a fixed effect model for the analysis of the data and hypotheses testing and generalized method of moments (GMM) is used to check the robustness of the results. The findings of the study indicate that institutional ownership, board size, board independence, and CEO duality have a significant and positive impact on stock market liquidity, whereas managerial ownership has a significant and negative effect on stock market liquidity.

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Section: Introductionmentioning

confidence: 99%

The Role of Ownership Structure and Board Characteristics in Stock Market Liquidity

Abbassi

Hunjra

Alawi

et al. 2021

IJFS

Self Cite

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“…Issues related to the factors of stock market development were considered in the scientific works of Ukrainian and foreign economists, in particular, M. Yu. Ananiev [1], G. Castaneda [2], A. I. Hunjra, U. Perveen, L. Li, M. I. Chani, R. Mehmood [3], A. S. Nakonechna [4] and others. Taking into account the contribution of scientists to the development of this field of research, it should be noted that the question of the correlation between the ownership concentration of corporations and the financial market as such, which determines and defines the processes of their formation and general issues related to access and receipt of financial resources remains superficially considered.…”

Section: Introductionmentioning

confidence: 99%

Ownership concentration of corporations and the level of stock market development

Rudenok

Laktionova

Orlov³

2021

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Introduction. The ownership structure affects the stock market liquidity. In turn, stock markets are a key lever to ensure the efficient functioning and development of the country's economy as a whole. Recently, the widespread use of securities market instruments has become of paramount importance due to the limited opportunities for self-financing of enterprises and the shortage of external sources of financing. The performance of the stock market of its functions is largely determined by its characteristics, the implementation of which leads to positive structural changes in the economy. Aim and tasks. The main purpose of the article is to determine the correlation between the ownership concentration of corporations and the level of stock market development in Ukraine and the world. Results. The comprehensive characteristics of financial systems are characterized by the measurement of four categories for one of the key components of the financial sector, namely financial markets. Such categories include the depth of the financial market, the level of use of financial markets among individuals, the efficiency of financial markets in the provision of financial services, and the volatility of financial markets. A general description of the development of financial markets is given, it is determined that developing financial systems tend to be less deep as well as somewhat less efficient, their access and stability are on par with those of developed countries. The article shows the results of correlation-regression analysis between ownership concentration and the above categories, taking into account data from different countries. Conclusions. To determine the depth of financial markets, the article used the capitalization of the stock market as a percentage of GDP. Increasing the level of concentration of ownership leads to a decrease in this indicator. The inverse relationship between ownership concentration and characteristics of access to financial services has been confirmed. To analyze the efficiency of financial markets, this paper uses the ratio of the total value of traded shares to the average value of market capitalization for the analyzed period. The inverse relationship between ownership concentration and characteristics of efficiency has been also confirmed. Stability has a particularly low correlation with the other three characteristics. As a result, the direct relationship between ownership concentration and characteristics of financial markets stability has been confirmed.

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“…The economic and business environments of developing countries are quite different from developed countries (Hunjra et al 2020b). Growth of the capital market in developing countries is low; therefore, banks of developing countries are not sensitive to the market environment.…”

Section: Introductionmentioning

confidence: 99%

Impact of Capital Regulation and Market Discipline on Capital Ratio Selection: A Cross Country Study

Hunjra

Zureigat

Mehmood

2020

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We aim to analyze the impact of capital regulation and market discipline on capital to risk-weighted assets ratio. We used the panel data of Asian developing-countries banks for the period from 2009 to 2018. We collected data from the financial statements of 73 banks of Pakistan, Jordan, Indonesia, the Philippines, Saudi Arabia, and Thailand. We used the generalized method of moment (GMM) to analyze the results. We find that capital regulation and market disciplines significantly influence the capital ratio in Asian developing countries.

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Impact of ownership concentration, institutional ownership and earnings management on stock market liquidity

Cited by 27 publications

References 64 publications

The Role of Ownership Structure and Board Characteristics in Stock Market Liquidity

The Role of Ownership Structure and Board Characteristics in Stock Market Liquidity

Ownership concentration of corporations and the level of stock market development

Impact of Capital Regulation and Market Discipline on Capital Ratio Selection: A Cross Country Study

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