Stock Liquidity and the Cost of Equity Capital in Global Markets

Author:

Amihud Yakov1,Hameed Allaudeen2,Kang Wenjin3,Zhang Huiping4

Affiliation:

1. YAKOV AMIHUD is the Ira Leon Rennert Professor of Entrepreneurial Finance, and is the coauthor of Market Liquidity: Asset Pricing, Risk and Crises (Cambridge University Press, 2013), doing research on the effects of liquidity on value and expected return, and on the design and evaluation of securities markets' trading methods. His research also includes the evaluation of corporate financial policies and mergers and acquisitions, on which he published many articles.

2. ALLAUDEEN HAMEED is Provost's Chair Professor of Finance, Department of Finance, NUS Business School, National University of Singapore. Allaudeen Hameed's research work covers return-based trading strategies, liquidity and return co-movement and has published several papers in leading finance journals.

3. WENJIN KANG is a Professor of Finance at Hanqing Advanced Institute of Economics and Finance at Renmin University of China. Wenjin Kang's research area is empirical asset pricing, with a focus on market microstructure and liquidity. His research works study the cross-sectional and time-series determinants of liquidity, and how liquidity is priced in financial markets. He also conducts researches about the investors' behavior and market anomalies in Chinese market.

4. HUIPING ZHANG is a senior lecturer of business at JCU Singapore. Huiping Zhang's research interests include the effects of liquidity on stock returns in the U.S. and the global market, and the measurement of liquidity in emerging markets. She also does research on the impact of media coverage on stock liquidity and returns in China stock market.

Publisher

Wiley

Subject

Management of Technology and Innovation

Reference17 articles.

1. “Leverage, moral hazard and liquidity;Acharya;Journal of Finance,2011

2. Illiquidity and stock returns: cross-section and time-series effects;Amihud;Journal of Financial Markets,2002

3. The illiquidity premium: International evidence;Amihud;Journal of Financial Economics,2015

4. Asset pricing and the bid-ask spread;Amihud;Journal of Financial Economics,1986

5. Liquidity and Asset Prices: Financial Management Implications;Amihud;Financial Management,1988

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