L'activisme des investisseurs institutionnels, l'asymétrie d'informations et la liquidité du marché

Conference (2012, November 28)

The purpose of this study is to examine the effect of institutional investors’ ownership and their activism on informational asymmetry and stock market liquidity using a sample of 162 French-listed ... [more ▼]

The purpose of this study is to examine the effect of institutional investors’ ownership and their activism on informational asymmetry and stock market liquidity using a sample of 162 French-listed companies over a 3-year period (2007-2009). The findings show that the proportion of institutional investors, and particularly, pension funds positively influence stock market liquidity, which confirms the signalling and trading hypotheses. These investors perform important trades among their portfolios, leading to favourable effects on the market liquidity. These shareholders’ real involvement in companies is considered as a governance mechanism that tends to contribute to a better liquidity. [less ▲]

L'impact des investisseurs institutionnels sur l'asymétrie d'informations et la liquidité du marché français

Conference (2012, May 24)

L'impact de la divulgation d'informations sur la liquidité du marché français

in Finance et Stratégies de Développement (2012)

This paper examines the relationship between the quality of financial disclosure and the French stock-market liquidity. Based on a sample of 196 firms over a period from 2004 to 2007, we find that there ... [more ▼]

This paper examines the relationship between the quality of financial disclosure and the French stock-market liquidity. Based on a sample of 196 firms over a period from 2004 to 2007, we find that there is a positive and statistically significant relationship between the quality of Annual Reports and market liquidity. This result should encourage French authorities to develop the informational environment as an indispensable means to prevent the risk of illiquidity. [less ▲]

The impact of financial disclosure on the information asymmetry and the liquidity of French listed companies

Conference (2011, May)

This paper examines the relationship between the extent of financial disclosure, information asymmetry and stock-market liquidity in France. Based on a sample of 196 French listed firms over a period from ... [more ▼]

This paper examines the relationship between the extent of financial disclosure, information asymmetry and stock-market liquidity in France. Based on a sample of 196 French listed firms over a period from 2004 to 2007, we find that there is a positive and statistically significant relationship between the extent of information displayed through annual reports and market liquidity. This is explained by the negative effect of the disclosure on the adverse selection component of the bid-ask spread. This effect is confirmed by the commitment to IFRS by French-listed firms since 2005. This result should encourage French authorities to enhance their informational environment as a means to reduce information asymmetry and to prevent the risk of illiquidity. [less ▲]

Ownership Structure and Stock Market Liquidity in France

in Bankers, Markets, Investors [=BMI] (2010), 104

This paper examines the effects of concentrated ownership structure and shareholder’s type on the French stock-market liquidity. The results show that ownership concentration negatively affects market ... [more ▼]

This paper examines the effects of concentrated ownership structure and shareholder’s type on the French stock-market liquidity. The results show that ownership concentration negatively affects market liquidity suggesting that large shareholders are likely to exacerbate information asymmetry, widen bid-ask spreads and decrease stock market liquidity. The findings also show that the proportion of institutional investors has a positive effect on market liquidity. These investors are inclined to trade more frequently on their stocks and to shrink bid-ask spreads. These findings are in line with adverse selection and trading hypotheses and shed the light on the role of corporate governance devices to consider shareholder minority interest’s protection, which leads to improved stock market liquidity levels. [less ▲]