We examine the impact of reported insider trading on market liquidity, as measured by an order-size-dependent volume …-weighted spread measure, which is called Xetra liquidity measure (XLM). This relationship is scrutinized for the German market both in … very active, most likely to hide their information based trading in higher trading volumes. We discover that the liquidity …

We develop a credit-risk model to study how information acquisition affects the liquidity in a secondary bond market …

board independence affects market liquidity and price efficiency. We focus on a comprehensive sample of 239 listed firms … improvements in firm liquidity and efficiency. The results suggest that greater board independence can lower the probability of … informed trading resulting in greater liquidity provision and smaller price delay …

This paper studies the effect of board reforms on stock liquidity using data from 37 countries. We document that board … reforms significantly increase stock liquidity—effective spread on average decreases by 12.7% after a board reform. As … information asymmetry is a key determinant of stock liquidity, we further find that board reforms decrease information asymmetry …

I study a model of market-liquidity provision by levered intermediaries that, besides operating trading desks, run … deposit-taking franchises. Levered intermediaries’ heightened incentive to absorb risk helps to counteract liquidity …. However, liquidity provision may also overshoot, leading to unhealthy price bubbles and causing asset origination to become …

market liquidity and worsens incentives causing a feedback effect that amplifies collateral costs. …

We use a unique data set from the Trade Reporting and Compliance Engine (TRACE) to study liquidity e ffects in the US … structured product market. Our main contribution is the analysis of the relation between the accuracy in measuring liquidity and … provide guidance for improving transparency while maintaining trader confidentiality. In addition, we analyze liquidity in the …

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 …

Traditional liquidity measures can provide a false impression of the liquidity and stability of financial market … show that a standard measure of liquidity, the effective bid-ask spread, dramatically underestimates the true cost of …

number of public investors who trade it. Although these results match nicely with common notions of liquidity, one key … element is missing: liquidity also depends on (3) an asset s correlation with other securities. For example, if an illiquid … security is added, the liquidity of the non-market asset is still a decreasing function of volatility and an increasing …