IDEAS home Printed from https://ideas.repec.org/a/taf/raaexx/v32y2025i2p299-328.html
   My bibliography  Save this article

Corporate governance, institutional ownership, and stock liquidity of SMEs: evidence from China

Author

Listed:
  • Wei Liu
  • Yoshihisa Suzuki

Abstract

This study explores the relationship between corporate governance and stock liquidity of Chinese small and medium-sized enterprises (SMEs). Our findings reveal a nonlinear (U-shaped) relationship between the overall quality of corporate governance and stock liquidity, implying that, unlike large-sized listed firms, SMEs cannot monotonically increase liquidity through improved corporate governance. After examining the sub-indicators individually, we find that the percentage of institutional shareholdings is the main driver of this U-shaped relationship. The nonlinear relationship between institutional shareholdings and stock liquidity suggests that continuously enhancing corporate governance may reduce stock liquidity, posing challenges for SMEs in securing financing.

Suggested Citation

  • Wei Liu & Yoshihisa Suzuki, 2025. "Corporate governance, institutional ownership, and stock liquidity of SMEs: evidence from China," Asia-Pacific Journal of Accounting & Economics, Taylor & Francis Journals, vol. 32(2), pages 299-328, March.
    • Handle: RePEc:taf:raaexx:v:32:y:2025:i:2:p:299-328
    DOI: 10.1080/16081625.2024.2353063
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/16081625.2024.2353063
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/16081625.2024.2353063?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    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:taf:raaexx:v:32:y:2025:i:2:p:299-328. 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: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/raae20 .

    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.