Stock Market Liquidity in Chile
Electronic Access:
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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.
Series:
Working Paper No. 2016/223
Subject:
Asset and liability management Corporate governance Economic sectors Financial institutions Financial markets Liquidity Liquidity indicators Liquidity management Stock markets Stocks
English
Publication Date:
November 16, 2016
ISBN/ISSN:
9781475554656/1018-5941
Stock No:
WPIEA2016223
Pages:
29
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