We evaluate whether the adoption of performance commitment clauses in M&A deals affects the corporate liquidity of acquirers. Using a sample of Chinese M&A deals from 2007 to 2020, we find that firms signing performance commitment clauses in acquisitions are associated with lower liquidity,...

In this study, we examine the effect of introducing SSE 50ETF index options trading on stock market volatility using a panel data evaluation approach. Based on the cross-sectional dependence among international stock indices and macroeconomic indicators, we estimate the counterfactual volatility...

Investor sentiment affects stock market liquidity by affecting noise trading and irrational market makers. Previous studies have focused on this effect with the time-series variation in sentiment and liquidity. This paper utilizes firm-specific news sentiment (FSNS) to examine its effect on...