IDEAS home Printed from https://ideas.repec.org/a/cup/jfinqa/v56y2021i5p1844-1876_11.html
   My bibliography  Save this article

Global Liquidity Provision and Risk Sharing

Author

Listed:
  • Jiao, Feng
  • Sarkissian, Sergei

Abstract

We examine liquidity-related characteristics of U.S. firms with cross-listed shares in 20 foreign markets in the 1950–2013 period. We find that firms after foreign-market listing exhibit lower liquidity sensitivity and lower liquidity beta and suffer less from transitory price shocks. These results are stronger when firms are listed on multiple exchanges and in larger and more liquid markets. The liquidity enhancement is associated with firms’ increased foreign ownership postlisting and is effective for firms with high levels of volatility, foreign income, and foreign trading and a high probability of informed trading. Our findings provide support for global markets providing liquidity and reducing liquidity risk to U.S. firms.

Suggested Citation

  • Jiao, Feng & Sarkissian, Sergei, 2021. "Global Liquidity Provision and Risk Sharing," Journal of Financial and Quantitative Analysis, Cambridge University Press, vol. 56(5), pages 1844-1876, August.
    • Handle: RePEc:cup:jfinqa:v:56:y:2021:i:5:p:1844-1876_11
    as

    Download full text from publisher

    File URL: https://www.cambridge.org/core/product/identifier/S0022109020000502/type/journal_article
    File Function: link to article abstract page
    Download Restriction: no
    ---><---

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cup:jfinqa:v:56:y:2021:i:5:p:1844-1876_11. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Kirk Stebbing (email available below). General contact details of provider: https://www.cambridge.org/jfq .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.