The effects of stock liquidity on firm value and corporate governance: Endogeneity and the REIT experiment

William Mingyan Cheung, Richard Chung, Scott Fung*

*この研究の対応する著者

研究成果: Article査読

33 被引用数 (Scopus)

抄録

This study examines the effects of stock liquidity on firm value and corporate governance using the Real Estate Investment Trust (REIT) setting. The unique features of the REIT industry, including homogeneity of the investment structures, the high payout requirement, and the importance of institutional investors, highlight the positive effect of stock liquidity on firm value through corporate governance. To address the endogeneity problem, we perform a difference-in-differences test based on the propensity score matching estimator. The result shows that REIT stock liquidity has a causal and positive effect on firm value, as measured by Tobin's Q. Importantly, REIT stock liquidity is conducive to better corporate governance through the channel of institutional ownership. REIT stock liquidity leads to higher institutional ownership, particularly for institutional investor types that are active monitors and institutional investors with multi-firm ownership in their REIT portfolios.

本文言語English
ページ(範囲)211-231
ページ数21
ジャーナルJournal of Corporate Finance
35
DOI
出版ステータスPublished - 2015 12月 1
外部発表はい

ASJC Scopus subject areas

  • ビジネスおよび国際経営
  • 財務
  • 経済学、計量経済学
  • 戦略と経営

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