State ownership and stock liquidity: Evidence from privatization

We provide unique firm-level evidence of the relation between state ownership and stock liquidity. Using a broad sample of newly privatized firms (NPFs) from 53 countries over the period 1994–2014, our study identifies a non-monotonic association between state ownership and stock liquidity. The inve...

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Detalles Bibliográficos
Autores principales: Boubakri, Narjess, Chen, Ruiyuan (Ryan), El Ghoul, Sadok, Guedhami, Omrane, Nash, Robert
Formato: Online Artículo Texto
Lenguaje:English
Publicado: Elsevier B.V. 2020
Materias:
Article
Acceso en línea:https://www.ncbi.nlm.nih.gov/pmc/articles/PMC7581425/
http://dx.doi.org/10.1016/j.jcorpfin.2020.101763
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author Boubakri, Narjess
Chen, Ruiyuan (Ryan)
El Ghoul, Sadok
Guedhami, Omrane
Nash, Robert
author_facet Boubakri, Narjess
Chen, Ruiyuan (Ryan)
El Ghoul, Sadok
Guedhami, Omrane
Nash, Robert
author_sort Boubakri, Narjess
collection PubMed
description We provide unique firm-level evidence of the relation between state ownership and stock liquidity. Using a broad sample of newly privatized firms (NPFs) from 53 countries over the period 1994–2014, our study identifies a non-monotonic association between state ownership and stock liquidity. The inverse U-shaped relation is consistent with trade-offs between costs and benefits of state ownership and suggests an optimal level of government shareholdings that maximizes stock liquidity of NPFs. We further identify that the inflection point from the cost/benefit trade-off is contingent upon characteristics of the nation's institutional environment.
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spelling pubmed-75814252020-10-23 State ownership and stock liquidity: Evidence from privatization Boubakri, Narjess Chen, Ruiyuan (Ryan) El Ghoul, Sadok Guedhami, Omrane Nash, Robert Journal of Corporate Finance Article We provide unique firm-level evidence of the relation between state ownership and stock liquidity. Using a broad sample of newly privatized firms (NPFs) from 53 countries over the period 1994–2014, our study identifies a non-monotonic association between state ownership and stock liquidity. The inverse U-shaped relation is consistent with trade-offs between costs and benefits of state ownership and suggests an optimal level of government shareholdings that maximizes stock liquidity of NPFs. We further identify that the inflection point from the cost/benefit trade-off is contingent upon characteristics of the nation's institutional environment. Elsevier B.V. 2020-12 2020-10-22 /pmc/articles/PMC7581425/ http://dx.doi.org/10.1016/j.jcorpfin.2020.101763 Text en © 2020 Elsevier B.V. All rights reserved. Since January 2020 Elsevier has created a COVID-19 resource centre with free information in English and Mandarin on the novel coronavirus COVID-19. The COVID-19 resource centre is hosted on Elsevier Connect, the company's public news and information website. Elsevier hereby grants permission to make all its COVID-19-related research that is available on the COVID-19 resource centre - including this research content - immediately available in PubMed Central and other publicly funded repositories, such as the WHO COVID database with rights for unrestricted research re-use and analyses in any form or by any means with acknowledgement of the original source. These permissions are granted for free by Elsevier for as long as the COVID-19 resource centre remains active.
spellingShingle Article
Boubakri, Narjess
Chen, Ruiyuan (Ryan)
El Ghoul, Sadok
Guedhami, Omrane
Nash, Robert
State ownership and stock liquidity: Evidence from privatization
title State ownership and stock liquidity: Evidence from privatization
title_full State ownership and stock liquidity: Evidence from privatization
title_fullStr State ownership and stock liquidity: Evidence from privatization
title_full_unstemmed State ownership and stock liquidity: Evidence from privatization
title_short State ownership and stock liquidity: Evidence from privatization
title_sort state ownership and stock liquidity: evidence from privatization
topic Article
url https://www.ncbi.nlm.nih.gov/pmc/articles/PMC7581425/
http://dx.doi.org/10.1016/j.jcorpfin.2020.101763
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