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dc.contributor.authorCheung, William Mingyan
dc.contributor.authorChung, Richard
dc.contributor.authorFung, Scott
dc.date.accessioned2018-07-11T04:16:10Z
dc.date.available2018-07-11T04:16:10Z
dc.date.issued2015
dc.identifier.issn0929-1199
dc.identifier.doi10.1016/j.jcorpfin.2015.09.001
dc.identifier.urihttp://hdl.handle.net/10072/101631
dc.description.abstractThis 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.
dc.description.peerreviewedYes
dc.languageEnglish
dc.language.isoeng
dc.publisherElsevier
dc.relation.ispartofpagefrom211
dc.relation.ispartofpageto231
dc.relation.ispartofjournalJournal of Corporate Finance
dc.relation.ispartofvolume35
dc.subject.fieldofresearchInvestment and Risk Management
dc.subject.fieldofresearchBanking, Finance and Investment
dc.subject.fieldofresearchcode150205
dc.subject.fieldofresearchcode1502
dc.titleThe effects of stock liquidity on firm value and corporate governance: Endogeneity and the REIT experiment
dc.typeJournal article
dc.type.descriptionC1 - Articles
dc.type.codeC - Journal Articles
dcterms.licensehttp://creativecommons.org/licenses/by-nc-nd/4.0/
dc.description.versionAccepted Manuscript (AM)
gro.rights.copyright© 2015 Elsevier. Licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International Licence (http://creativecommons.org/licenses/by-nc-nd/4.0/) which permits unrestricted, non-commercial use, distribution and reproduction in any medium, providing that the work is properly cited.
gro.hasfulltextFull Text
gro.griffith.authorChung, Richard Yiu-Ming


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