The Relationship between Leverage and Liquidity

• Main Authors: Yen-Hsin Chu, 瞿燕信
• Other Authors: 吳如萍
• Format: Others
• Language: zh-TW
• Published: 2018
• Online Access: http://ndltd.ncl.edu.tw/handle/6men9b

碩士 === 樹德科技大學 === 金融系碩士班 === 106 === The liquidity of stock market in Taiwan has been in the difficulty of insufficient condition for a long period. In detail, the daily average transaction volume has decreased continually from more than 1,000 billion to less than 700 billion in 2016, which means that volume has reduced more than 30%. Generally speaking, this situation is not a regular phenomenon of capital market. The aim of this research is to discuss the influence and cause-effect relationship between the rules and factors of leverage that investors operate in stock market mechanism and the liquidity, in order to provide some recommendations for Securities. The research used the open data from Taiwan Stock Exchange to analyse the trading statistics of listed companies between 2013 to 2017. The result illustrated that the energy of leverage transaction mechanism would provide an efficient liquidity of stock market. In conclusion, the authority is recommended to expand the leverage transaction mechanism efficiently for the purpose of supplying the sufficient liquidity in the market.