Waseda Organizational and Financial Economics Seminar:
“The Effect of Stock Liquidity on Debt-Equity Choices” (April 22)
講演者 / Speaker
Cheung, Ming Yan William （Associate Professor, Waseda University）
- Field of Research Interests
Real estate investment trust (REIT), Corporate finance, Market liquidity
日 時 / Date & Time
Monday, 22 April 2019, 13:00 – 14:30
会 場 / Venue
Rm. #1111 on the 11th floor, Building #11, Waseda University
主 旨 / Outline
“The Effect of Stock Liquidity on Debt-Equity Choices”
We examine the effect of stock liquidity on a firm’s choice between debt and equity when funding its investment activities.
Using Russell index reconstitutions and two tick-size policy changes as exogenous shocks to liquidity, we show that stock liquidity increases a firm’spropensity to raise debt capital.
We also find support for a major economic mechanism underlying the positive impact of stock liquidity on debt financing: information produced by increased liquidity leads to a reduction of residual uncertainty, which lowers creditors’ information costs and thus the firm’s cost of debt capital.
These findings provide new insights into the effect of stock liquidity on external financing choice.
プログラム / Schedule
13:00～13:05 Opening Remarks （MIYAJIMA, Hideaki (Advisor, WIAS / Professor, Waseda University)）
13:05～14:05 Presentation
14:05～14:25 Question-and-answer session
14:25～14:30 Concluding Remarks（MIYAJIMA, Hideaki ）
対 象 / Prospected Audience
Faculty and staff members of a university, grad students, undergraduates, the general public
主 催 / Organizer
Research Institute of Business Administration, Waseda University
Waseda Institute for Advanced Study, Waseda University
申込み / Registration
Free of charge. Please come to the event venue directly.
