The link between stocks liquidity and firm’s performance in the Mena Region
Dissertant
Thesis advisor
University
Al Akhawayn University
Faculty
The School of Business Administration
University Country
Morocco
Degree
Master
Degree Date
2010
English Abstract
How can small investors infer value relevant information from publicly available data in information scarce emerging markets? Using a large dataset from the MENA region (Morocco, Egypt, Qatar, Saudi Arabia, United Arab Emirates, Jordan, Kuwait, and Bahrain), we document a significantly positive relationship between liquidity and firm performance.
We argue that lower level of information exposes stock market participants to excessive risk, and therefore any mechanism that can provide them with opportunity to lower this risk (by exiting the stock) is valuable.
Our results also show that this relationship is stronger in civil law countries than in common law countries.
Civil law countries have lower information disclosures and thus expose investors to more risk.
As a result, liquidity is valued more in civil law relative to common law countries.
We also show that the relationship between liquidity and firm performance breaks down during the crisis period.
We argue that excessive panic during the crisis period may increase the liquidity (i.e.
turnover), but it does not necessarily result in better performance of firms.
Main Subjects
Business Administration
Financial and Accounting Sciences
Topics
- Financing
- Investments
- Business management
- Industrial management
- Business enterprises
- Evaluation
- Middle East
- Performance
No. of Pages
29
Table of Contents
Table of contents.
Abstract.
Chapter One : Introduction.
Chapter Two : Motivation and background.
Chapter Three : Data.
Chapter Four : Methodology.
Chapter Five : Conclusion.
References.
American Psychological Association (APA)
Zahrah, Bouaich Fatimah. (2010). The link between stocks liquidity and firm’s performance in the Mena Region. (Master's theses Theses and Dissertations Master). Al Akhawayn University, Morocco
https://search.emarefa.net/detail/BIM-625883
Modern Language Association (MLA)
Zahrah, Bouaich Fatimah. The link between stocks liquidity and firm’s performance in the Mena Region. (Master's theses Theses and Dissertations Master). Al Akhawayn University. (2010).
https://search.emarefa.net/detail/BIM-625883
American Medical Association (AMA)
Zahrah, Bouaich Fatimah. (2010). The link between stocks liquidity and firm’s performance in the Mena Region. (Master's theses Theses and Dissertations Master). Al Akhawayn University, Morocco
https://search.emarefa.net/detail/BIM-625883
Language
English
Data Type
Arab Theses
Record ID
BIM-625883