Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
7362380 | Journal of Financial Markets | 2018 | 65 Pages |
Abstract
We document a negative association between foreign competition and stock liquidity. Our results are robust to addressing endogeneity concerns. We identify deterioration in the information environment in response to an increase in foreign competition as the channel behind the main result. Specifically, we find that the negative association is more evident among firms that are more susceptible to the negative consequences of foreign competition and firms that are poorly monitored and have lower analyst coverage. Our paper contributes to the understanding of the externalities of trade liberalization for financial market quality.
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Nader Atawnah, Balasingham Balachandran, Huu Nhan Duong, Edward J. Podolski,