Liquidity, corporate policy, and corporate governance

[摘要] Liquidity has a potential impact on the investment strategies and financing strategies which can affect or be affected by the risk perspective. The thesis aims to establish linkage between liquidity and three risk-related issues in the finance literature. First, we inspect the impact of market liquidity on feedback trading. Our results suggest that the market liquidity should be included in the feedback traders’ demand function for shares in East Asian stock markets. We then analyse the listed US firms to test the impact financial flexibility on firm’s corporate social responsibility. We find a negative relationship between financial flexibility and CSR, which indicates that the two are substitutes to each other in hedging financing risk. Furthermore, we find the negative relationship between financial flexibility and CSR is affected by both CEO conservatism and the lifecycle stage of a firm. Finally, we investigate the impact of CEO inside debt compensation on the adjustment speed of cash holding of the listed US firms. We find that the CEOs with high inside debt compensation accelerate the adjustment of cash holding when the actual cash ratio is below target while decelerating the adjustment speed of cash holding when there is excess cash.

[发布机构] University:University of Birmingham;Department:Birmingham Business School, Department of Finance

[关键词] H Social Sciences;HG Finance