This paper studies the effect of stock liquidity on blockholders' choice of governance mechanisms. We focus on hedge … measure governance intent rather than only studying instances of actual governance. We find that liquidity increases the … likelihood that a hedge fund acquires a block in a firm. Conditional upon acquiring a stake, liquidity reduces the likelihood …

government-guaranteed MBS to meet their liquidity needs during the crisis …

, ceteris paribus, corporate bonds held by investors with high exposure to securitized bonds and liquidity needs experience … model of dynamic asset liquidation: Investors with large enough future liquidity shocks retain liquid assets, and instead …, these funds did not sell securitized bonds on average and instead sold corporate bonds to meet their liquidity needs. Sales …

of bond and issuer controls, including bond liquidity and duration, and issuer fixed effects. This behavior is related to …