We document that corporate investment contributes to stock liquidity. This study demonstrates a positive relationship between abnormal corporate investment and stock liquidity in the crosssection. Moreover, stock liquidity improves more apparently for firms with financial constraints. Our...

Using the unique datasets of the Korean Stock Exchange (KSE), this paper finds that foreign ownership and trading activity negatively affects the price discovery process of common stocks. In contrast, the trading activity of domestic investors enhances information efficiency of intraday prices....