Institutional Ownership and Stock Liquidity: Evidence From an Emerging Market
This research investigates whether institutional ownership contributes to enhancement of stock liquidity in emerging markets. The study examines data of listed companies on the Vietnamese stock market. Using a comprehensive data set for all stocks listed on Ho Chi Minh Stock Exchange (HOSE) and Hano...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
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SAGE Publishing
2024-03-01
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| Series: | SAGE Open |
| Online Access: | https://doi.org/10.1177/21582440241239116 |
| _version_ | 1797254132348747776 |
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| author | Ngoc Bao Dinh Van Nguyen Hong Tran |
| author_facet | Ngoc Bao Dinh Van Nguyen Hong Tran |
| author_sort | Ngoc Bao Dinh |
| collection | DOAJ |
| description | This research investigates whether institutional ownership contributes to enhancement of stock liquidity in emerging markets. The study examines data of listed companies on the Vietnamese stock market. Using a comprehensive data set for all stocks listed on Ho Chi Minh Stock Exchange (HOSE) and Hanoi Stock Exchange (HNX) from 2008 to 2017, the statistical findings consistently demonstrate that institutional ownership has a negative impact on stock liquidity. In other words, the empirical evidence supports the adverse selection hypothesis that the upward trend of institutional ownership could reduce stock liquidity because the institutional investors with superior and advantageous information could exacerbate informational asymmetry issues. By using a case study in Vietnam, this research makes an original contribution to the academic literature by examining the relationship between institutional investors and stock liquidity in emerging markets. In addition, this study offers policymakers, authorities, agencies, and managers some insightful recommendations and implications that will help to not only promote the active participations of professional institutions but also improve stock liquidity, fairness, and efficiency. |
| first_indexed | 2024-04-24T21:45:06Z |
| format | Article |
| id | doaj.art-c59ddef31c3e483b9597dc5725d01d87 |
| institution | Directory Open Access Journal |
| issn | 2158-2440 |
| language | English |
| last_indexed | 2024-04-24T21:45:06Z |
| publishDate | 2024-03-01 |
| publisher | SAGE Publishing |
| record_format | Article |
| series | SAGE Open |
| spelling | doaj.art-c59ddef31c3e483b9597dc5725d01d872024-03-21T02:03:19ZengSAGE PublishingSAGE Open2158-24402024-03-011410.1177/21582440241239116Institutional Ownership and Stock Liquidity: Evidence From an Emerging MarketNgoc Bao Dinh0Van Nguyen Hong Tran1University of Economics, The University of Danang, VietnamUniversity of Economics, The University of Danang, VietnamThis research investigates whether institutional ownership contributes to enhancement of stock liquidity in emerging markets. The study examines data of listed companies on the Vietnamese stock market. Using a comprehensive data set for all stocks listed on Ho Chi Minh Stock Exchange (HOSE) and Hanoi Stock Exchange (HNX) from 2008 to 2017, the statistical findings consistently demonstrate that institutional ownership has a negative impact on stock liquidity. In other words, the empirical evidence supports the adverse selection hypothesis that the upward trend of institutional ownership could reduce stock liquidity because the institutional investors with superior and advantageous information could exacerbate informational asymmetry issues. By using a case study in Vietnam, this research makes an original contribution to the academic literature by examining the relationship between institutional investors and stock liquidity in emerging markets. In addition, this study offers policymakers, authorities, agencies, and managers some insightful recommendations and implications that will help to not only promote the active participations of professional institutions but also improve stock liquidity, fairness, and efficiency.https://doi.org/10.1177/21582440241239116 |
| spellingShingle | Ngoc Bao Dinh Van Nguyen Hong Tran Institutional Ownership and Stock Liquidity: Evidence From an Emerging Market SAGE Open |
| title | Institutional Ownership and Stock Liquidity: Evidence From an Emerging Market |
| title_full | Institutional Ownership and Stock Liquidity: Evidence From an Emerging Market |
| title_fullStr | Institutional Ownership and Stock Liquidity: Evidence From an Emerging Market |
| title_full_unstemmed | Institutional Ownership and Stock Liquidity: Evidence From an Emerging Market |
| title_short | Institutional Ownership and Stock Liquidity: Evidence From an Emerging Market |
| title_sort | institutional ownership and stock liquidity evidence from an emerging market |
| url | https://doi.org/10.1177/21582440241239116 |
| work_keys_str_mv | AT ngocbaodinh institutionalownershipandstockliquidityevidencefromanemergingmarket AT vannguyenhongtran institutionalownershipandstockliquidityevidencefromanemergingmarket |