Institutional Investors, information asymmetry and stock market liquidity in France

Sougné, Danielle; Aymen, Ajina; Faten, Lakhal

doi:10.1108/IJMF-08-2013-0086

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Institutional Investors, information asymmetry and stock market liquidity in France

Sougné, Danielle; Aymen, Ajina; Faten, Lakhal

2015 • In International Journal of Managerial Finance, 11

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https://hdl.handle.net/2268/164885

DOI
10.1108/IJMF-08-2013-0086

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Keywords :

Information assymetry; Institutional Investors; Pension funds; Liquidity

Abstract :

[en] The purpose of this paper is to examine the effect of institutional investor's ownership and type on information asymmetry and stock market liquidity in France.The findings show that the proportion of institutional investors has a positive and significant effect on stock-market liquidity, which confirms the signal theory and trading hypothesis. These investors perform high trading activity which favorably affects market liquidity. The results also show that pension funds improve liquidity. This result suggests that pension funds manage huge assets decreasing transactions costs and improving liquidity. They display a positive signal to the market about more transparency and a low level of information asymmetry.

Disciplines :

Finance

Author, co-author :

Sougné, Danielle ; Université de Liège - ULiège > HEC-Ecole de gestion : UER > Gestion financière et consolidation

Aymen, Ajina

Faten, Lakhal

Language :

English

Title :

Institutional Investors, information asymmetry and stock market liquidity in France

Publication date :

January 2015

Journal title :

International Journal of Managerial Finance

ISSN :

1743-9132

eISSN :

1758-6569

Publisher :

Emerald Group Publishing Limited, Bingley, United Kingdom

Volume :

Peer reviewed :

Peer Reviewed verified by ORBi

Available on ORBi :

since 31 March 2014

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