An Empirical Research Of The Relationship Between Owership Structure And Liquidity With Impact Of Information Asymmetry

The trend of research on owership structure with view of financial market microstructure is just rising,this paper investigated relationship between owership structure and liquidity with impact of information asymmetry at financial market microstructure level,and investigated the effect of information asymmetry in the process of owership structure influencing liquidity,so this paper provides some reference for the further relevant research.This paper first set foot in the theory and empirical study of relationship between owership structure and liquidity,research around two hypotheses(adverse selection hypothesis and trading hypothesis) of the domain.After that this paper introduced six information model,then adopt PIN index that not rely on decomposing spread to represent the degree of information asymmetry.This paper research on 374 firms of Shenzhen Stock Exchange in 2007 and find that owership structure didnot significant influence the degree of information asymmetry,and the degree of information asymmetry also had barely influence on the level of liquidity,but owership structure variables had significant correlation with the level of trading activity,it also had significant correlation with level of liquidity.It reveals that owership structure mainly influence the level of liquidity with trading activity,and t information asymmetry had no clear function on relationship between owership structure and liquidity.The contributions of this paper is that initial research on the function of how owership structure influence liquidity,and provide a explanation for the negative relationship between fund shareholding and liquidity.However,the function that information asymmetry in the relationship between ownership structure and liquidity,is need to be research futher more.