The Impact of Stock Liquidity on Corporate Investment Expenditure：A Comparison of Listed Companies in Taiwan,Mainland China and Hong Kong

• Main Authors: Hui-Ying Chang, 張慧盈
• Other Authors: William T. Lin
• Format: Others
• Language: zh-TW
• Published: 2008
• Online Access: http://ndltd.ncl.edu.tw/handle/83768013510180146231

碩士 === 淡江大學 === 財務金融學系碩士班 === 96 === The paper explores the impact of stock liquidity on corporate investment expenditure for listed companies in Taiwan, Mainland China and Hong Kong based on Bhagat et al.’s model. We not only explore the variable of capital expenditure and R&D, and most important than that we also study the growth of assets of asset acquisition activities distincted from the previous study. We find a positive relation between stock liquidity and corporate investment expenditure except for the growth of assets and capital expenditure of Mainland China,indicating that stock liquidity influences corporate investment expenditures. The increase of liquidity effectively expands the positive NPV（Net Present Value）investment projects because it reduces the cost of capital and benefit shareholder. The study of this literature tell us that the frictions in a firm’s trading environment can constrain its corporate investment expenditure.