• Corpus ID: 210713832

Corporate Governance, Noise Trading and Liquidity of Stocks

@article{Su2020CorporateGN,
  title={Corporate Governance, Noise Trading and Liquidity of Stocks},
  author={Jian Su},
  journal={arXiv: Trading and Market Microstructure},
  year={2020}
}
  • Jian Su
  • Published 17 January 2020
  • Economics, Business
  • arXiv: Trading and Market Microstructure
Our main task is to study the effect of corporate governance on the market liquidity of listed companies' stocks. We establish a theoretical model that contains the heterogeneity of investors' beliefs to explain the mechanisms by which corporate governance improves liquidity of the corporate stocks. In this process we found that the existence of noise traders who are semi-informed in the market is an important condition for corporate governance to have the effect of improving liquidity of the… 

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