Local Business Cycles and Local Liquidity

This study examines whether state-level economic conditions affect the liquidity of local firms. We find that liquidity levels of local stocks are higher (lower) when the local economy has performed well (poorly). This relation is stronger when local financing constraints are more binding, the local...

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Main Authors: BERNILE, Gennaro, Korniotis, George, Kumar, Alok, WANG, Qin
Format: text
Language:English
Published: Institutional Knowledge at Singapore Management University 2015
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Online Access:https://ink.library.smu.edu.sg/lkcsb_research/3666
https://ink.library.smu.edu.sg/context/lkcsb_research/article/4665/viewcontent/LocalBusinessCyclesLocalLiquidity_afv.pdf
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Institution: Singapore Management University
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spelling sg-smu-ink.lkcsb_research-46652017-06-12T08:52:22Z Local Business Cycles and Local Liquidity BERNILE, Gennaro Korniotis, George Kumar, Alok WANG, Qin This study examines whether state-level economic conditions affect the liquidity of local firms. We find that liquidity levels of local stocks are higher (lower) when the local economy has performed well (poorly). This relation is stronger when local financing constraints are more binding, the local information environment is more opaque, and local institutional ownership levels and trading intensity are higher. Overall the evidence supports the notion that the geographical segmentation of U.S. capital markets generates predictable patterns in local liquidity. 2015-10-01T07:00:00Z text application/pdf https://ink.library.smu.edu.sg/lkcsb_research/3666 info:doi/10.1017/S0022109015000447 https://ink.library.smu.edu.sg/context/lkcsb_research/article/4665/viewcontent/LocalBusinessCyclesLocalLiquidity_afv.pdf http://creativecommons.org/licenses/by-nc-nd/4.0/ Research Collection Lee Kong Chian School Of Business eng Institutional Knowledge at Singapore Management University Market segmentation liquidity local bias local business cycles capital constraints institutional investors return predictability Corporate Finance Finance and Financial Management
institution Singapore Management University
building SMU Libraries
continent Asia
country Singapore
Singapore
content_provider SMU Libraries
collection InK@SMU
language English
topic Market segmentation
liquidity
local bias
local business cycles
capital constraints
institutional investors
return predictability
Corporate Finance
Finance and Financial Management
spellingShingle Market segmentation
liquidity
local bias
local business cycles
capital constraints
institutional investors
return predictability
Corporate Finance
Finance and Financial Management
BERNILE, Gennaro
Korniotis, George
Kumar, Alok
WANG, Qin
Local Business Cycles and Local Liquidity
description This study examines whether state-level economic conditions affect the liquidity of local firms. We find that liquidity levels of local stocks are higher (lower) when the local economy has performed well (poorly). This relation is stronger when local financing constraints are more binding, the local information environment is more opaque, and local institutional ownership levels and trading intensity are higher. Overall the evidence supports the notion that the geographical segmentation of U.S. capital markets generates predictable patterns in local liquidity.
format text
author BERNILE, Gennaro
Korniotis, George
Kumar, Alok
WANG, Qin
author_facet BERNILE, Gennaro
Korniotis, George
Kumar, Alok
WANG, Qin
author_sort BERNILE, Gennaro
title Local Business Cycles and Local Liquidity
title_short Local Business Cycles and Local Liquidity
title_full Local Business Cycles and Local Liquidity
title_fullStr Local Business Cycles and Local Liquidity
title_full_unstemmed Local Business Cycles and Local Liquidity
title_sort local business cycles and local liquidity
publisher Institutional Knowledge at Singapore Management University
publishDate 2015
url https://ink.library.smu.edu.sg/lkcsb_research/3666
https://ink.library.smu.edu.sg/context/lkcsb_research/article/4665/viewcontent/LocalBusinessCyclesLocalLiquidity_afv.pdf
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