Abstract:This study falls within the literature on connections between market microstructure of firm’s securities and corporate finance. We conduct an analysis on a sample of firms added to the FTSE 100, over the time-period 2005-2017, following the evidence, widely documented in literature, that additions to major indexes are exogenous liquidity-enhancing events. We study the improvement in liquidity and expansion in capital spending, either in the univariate analysis, either in multivariate analysis. Our re… Show more
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