Ownership Dispersion and Liquidity: Evidence from Thailand

Authors

  • Yordying Thanatawee Burapha University

Keywords:

Liquidity, Ownership Dispersion, Bid-Ask Spreads

Abstract

This paper examines the relationship between ownership dispersion and stock liquidity of Thai listed companies over the period 2011-2015. The results indicate narrower bid-ask spreads, lower Amihud’s illiquidity ratio, and higher liquidity ratio when firms have higher free float or larger number of shareholders. Thus, the findings reveal that ownership dispersion has a positive effect on liquidity. The same results are obtained when the data is estimated by the Two-Stage Least Squares (2SLS) to control endogeneity problem. The findings have important implications for policymakers and managers to enhance stock liquidity through increased ownership dispersion.

Author Biography

Yordying Thanatawee, Burapha University

Graduate School of commerce.

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Published

2018-10-22

How to Cite

Thanatawee, Y. (2018). Ownership Dispersion and Liquidity: Evidence from Thailand. Creative Business and Sustainability Journal, 40(3), 25–48. Retrieved from https://so01.tci-thaijo.org/index.php/CBSReview/article/view/151574

Issue

Vol. 40 No. 3: ISSUE 157, JULY - SEPTEMBER 2018

Section

Research Articles

License

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