In recent years a substantial amount of literature in one way or another deals with liquidity. The interest in it grows … measures of liquidity and publish them in the regular reports. But as in literature, there is still no consensus as what … liquidity really means and how it should be measured, or reported, understood or predicted, as the consistent summary of what …

pricing literature. In the first essay, I investigate whether foreign institutional investors affect stock liquidity in … higher liquidity. However, it is difficult to interpret the causal relation of this finding because institutional investors … experiment suggests a causal link between foreign institutional investors and liquidity. Consistent with the predictions of …