The purpose of this study is to find the factors that influence corporate liquidity holdings in Canada. This study also seeks to extend the studies of Isshaq and Bokpin [1] and Bruinshoofd and Kool [2] related to corporate liquidity management. A sample of 164 Canadian firms listed on the Toronto Stock Exchange for a period of 3 years (from 2008-2010) was selected. This study applied co-relatio...

This paper studies banks’decision whether to borrow from the interbank market or to sell assets in order to cover liquidity shortage in presence of credit risk. The following trade-off arises. On the one hand, tradable assets decrease the cost of liquidity management. On the other hand, uncertainty about credit risk of tradable assets might spread from the secondary market to the interbank mark...

The conference presentation focused on recent results on dynamic trading patterns in limit order markets, primarily foreign exchange and money markets. Clear feedbacks are observed between liquidity, volatility and volume. These results suggest that any regulatory regime for market liquidity should appreciate these feedback rules, and treat liquidity risk as endogenously determined, rather than...

I. Conceptual studies of market liquidity Dupont, D " The effects of transaction costs on depth and spread " Gravelle, T " The market microstructure of dealership equity and government securities markets: how they differ " Muranaga, J and Shimizu, T " Market microstructure and market liquidity " Ui, T " Transparency and liquidity in securities markets " II. Empirical studies of market liquidity...

This paper looks into how the liquidity of Hong Kong stock market has evolved since the Asian financial crisis, and examines the determinants of changes in liquidity. Various conventional liquidity indicators are constructed for the study period from 1997 to June 2001, and they show that, having deteriorated during the Asian financial crisis and the Russia crisis, market liquidity has mostly re...

The results presented in this paper show that integrative financial and operating measures of liquidity provide investors and creditors with information beyond that provided by static measures of short-term liquidity such as the current and quick ratios. Using a sample of restaurant firms over the period 1994–2003, our analysis shows dynamic measures of liquidity provide a drastically different...

I discuss some simple microfoundations for Liquidity Deflation, a concept put forward in Calvo (2016 a and b), which can give rise to liquidity trap conditions under perfectly flexible prices. Unlike in Keynes (1936), this is a Supply Side Liquidity Trap. Moreover, modeling the policy interest rate as the rate of return on money-like instruments à la Calvo and Végh (1995), denoted by i!, I show...

Abstract This study shows that the geographic network of public firms facilitates propagation local economic conditions across United States. We identify connections among U.S. states based on 10‐K listings and show returns liquidity headquartered in connected exhibit excess comovement. The also generate spillover effects where economy a state affects its amplifies impact economy. In particular...

This paper proposes a new framework which captures the systemic nature of funding liquidity risk. Using this framework we develop a set of indicators which measure different aspects of the systemic funding liquidity risk in the interbank foreign currency lending market: (i) systemic funding liquidity needs, (ii) systemic vulnerability, (iii) systemic importance and (iv) systemic liquidity short...