We document the negative effect of stock liquidity on default risk for a sample of 46 countries. We further find that … shock that increases liquidity. The effect of liquidity on default risk is more pronounced in countries with poorer investor … impact of stock liquidity on default risk in international markets …

Purpose The ownership structure in Japanese firms has experienced a significant change recently, fueled primarily by … ownership on the default risk of Japanese firms. Design/methodology/approach We collected data from the Nikkei Corporate … using alternative estimation techniques. Findings Results show a significant positive influence of insider ownership on …

This paper examines the impact of stock liquidity on firm bankruptcy risk. Using the Securities and Exchange Commission … decimalization regulation as a shock to stock liquidity, we establish that enhanced liquidity decreases default risk. Stocks with the … highest default risk experience the largest improvements. We find two mechanisms through which stock liquidity reduces firm …

ownership will be the dominant form of return to equity. If markets expect a contest for control, these returns will show up in …