Impact of ownership concentration, institutional ownership and earnings management on stock market liquidity

Download This Article

Ahmed Imran Hunjra ORCID logo, Uzma Perveen , Leon Li ORCID logo, Muhammad Irfan Chani ORCID logo, Rashid Mehmood ORCID logo

DOI:10.22495/cocv17i2art7

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.

Abstract

Ownership structure plays a vital role in stock market liquidity. We analyze the impact of ownership concentration, institutional ownership and earnings management on stock market liquidity. We select 114 firms from manufacturing sector of Pakistan, India, Australia and Singapore. We extract data from DataStream from 2010 to 2018 of selected countries. We apply Generalized Method of Moments (GMM) to analyze the data. We find that ownership concentration, institutional ownership and earnings management significantly affect the stock market liquidity.

Keywords: Ownership Concentration, Institutional Ownership, Earnings Management, Stock Market Liquidity, Emerging Economies

Authors’ individual contribution: Conceptualization – A.I.H. and R.M.; Writing – U.P., M.I.C., and R.M.; Methodology – A.I.H., M.I.C., and L.L.; Supervision – A.I.H.; Formal Analysis – L.L., A.I.H., and R.M.

JEL Classification: G14, G32, G34, M48

Received: 08.12.2019
Accepted: 22.01.2020
Published online: 23.01.2020

How to cite this paper: Hunjra, A. I., Perveen, U., Li, L., Chani, M. I., & Mehmood, R. (2020). Impact of ownership concentration, institutional ownership and earnings management on stock market liquidity. Corporate Ownership & Control, 17(2), 77-87. http://doi.org/10.22495/cocv17i2art7