liquidity provision. However, in this paper, we find that intraday reversal has no significant dependence on stock liquidity for … results confirm this liquidity oversupply explanation. The negative correlation between previous intraday returns and future … due to excessive liquidity provision from uninformed retail traders instead of a price correction from a temporary price …

Previous studies of the U.S. market regard short-term reversal as compensation for liquidity provision. However, we … find that intraday reversal has no significant dependence on stock liquidity for the Chinese market. Hence, based on a … pressure. The empirical results confirm this liquidity oversupply explanation. The negative correlation between previous …