Stock Market Liquidity in Chile

November 16, 2016

Preview Citation

Format: Chicago

Luis Brandão-Marques. Stock Market Liquidity in Chile, (USA: International Monetary Fund, 2016) accessed November 21, 2024

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

Chile has a large but relatively illiquid stock market. Global factors such as global risk appetite and monetary policy in advanced economies are key cyclical determinants of liquidity in Chilean equities. Evidence from a cross-section of emerging markets suggests strong protection of minority shareholders can help improve stock market liquitidity. Currently, illiquid in Chilean may have to pay 3½ percent more as cost of equity. Corporate governance should be improved, namely through the adoption of a stewardship code.

Subject: Asset and liability management, Corporate governance, Economic sectors, Financial institutions, Financial markets, Liquidity, Liquidity indicators, Liquidity management, Stock markets, Stocks

Keywords: Aggregate liquidity, Corporate governance, Global, Investor protection, Liquidity, Liquidity cost, Liquidity management, Liquidity premium, Liquidity regime, Liquidity service, Market liquidity, Stock markets, Stocks, WP

Publication Details

Pages:

29
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 2016/223
Stock No:

WPIEA2016223
ISBN:

9781475554656
ISSN:

1018-5941

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