Back, Kerry E.; Li, Tao; Ljungqvist, Alexander P. - C.E.P.R. Discussion Papers - 2013
Is greater trading liquidity good or bad for corporate governance? We address this question both theoretically and … information concerns her own plans for taking an active role in governance. We show that an increase in the liquidity of the firm … governance. Empirical tests using three distinct sources of exogenous variation in liquidity confirm the negative relation …