The relation between stock liquidity and firm value

• Main Authors: Meng-Jyun Lin, 林孟君
• Other Authors: Lie Huey Wang
• Format: Others
• Language: zh-TW
• Published: 2011
• Online Access: http://ndltd.ncl.edu.tw/handle/79094310697481717172

博士 === 銘傳大學 === 財務金融學系碩士班 === 99 === In the past, the researches of stock liquidity emphasize that the relation between stock liquidity and stock returns. The researches about the relation between stock liquidity and firm value are also important. In this study, we use Taiwanese public traded companies as the research data during the 2005 to 2009.We use price to book value ratio to be proxy firm value, and use stock turnover and liquidity ratio to be proxy stock liquidity. This study relation between stock liquidity and firm value by using panel data regression model, and analyze the relation between stock liquidity and firm value on good and bad corporate governance, high and low information publicly disclosed, and, high and low investor sentiment. The result shows that, the relation between stock liquidity and firm value is positive. It means the raise of stock liquidity will make trade more efficient and reduce trade cost to raise firm value. The relation between corporate governance and firm value is positive, that supports past researches say good corporate governance can rise firm value. The relation between information publicly disclosed and firm value is positive. Because information publicly disclosed is a supervisal system that can make manager choose effective investment and rise firm value. The relation between investor sentiment and firm value is negative, when using stock turnover to be proxy stock liquidity. The relation between investor sentiment and firm value is positive, when using liquidity ratio to be proxy stock liquidity. In the end, this study shows good corporate governance will strengthen the positive relation between stock liquidity and firm value, high information publicly disclosed will reduce the positive relation between stock liquidity and firm value. High investor sentiment will not effect the relation between stock liquidity and firm value.