execution speed and cost. Central dealers provide immediacy by pre-arranging fewer trades and holding larger inventory. However …, trading costs increase strongly with dealer centrality. Investors with strong liquidity need trade with central dealers and at … times of market-wide illiquidity. Central dealers thus serve as liquidity providers of last resort. …

double the roundtrip markups to investors compared to peripheral dealers. In turn, central dealers provide immediacy by …

hot markets, with low offer price, low-reputation underwriters or no VC backing face higher liquidity frictions, higher …

more sensitive to a liquidity-risk factor. Our results imply that information asymmetry has a substantial effect on asset … prices and that a primary channel linking asymmetry to prices is liquidity. …

We analyse the effect of concealing limit order traders’ identities on market liquidity. We develop a model in which … cost of liquidity provision were large when indeed it is small. This bluffing strategy is less effective when traders … anonymous market. For this reason, concealing limit order traders’ IDs affects market liquidity in our model. We test this …

Market liquidity is impacted by the presence of financial intermediaries that are informed and active participants in … instrumental variables, we identify the simultaneous equations model of liquidity and dual market maker decisions. We find that the … presence of dual market makers improves the liquidity of the more competitive and transparent equity markets, but widens the …

We develop a dynamic model of an order-driven market populated by discretionary liquidity traders. These traders must … patient traders demand liquidity, more patient traders provide it. Three equilibrium patterns are obtained, and these patterns … execution delay in providing liquidity; their proportion in the population, which determines the degree of competition among the …

Using eight measures of liquidity, and addressing the potential endogeneity of initial returns, we find underpricing … generally increases the secondary market liquidity of IPOs over the first year of trading, irrespective of the horizon over … which liquidity is measured. For two model specifications over the eight measures, fifteen regressions display signs …