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Two Essays On Liquidity Endogeneity And Effects Of Political Connections, Chengcheng Li
Two Essays On Liquidity Endogeneity And Effects Of Political Connections, Chengcheng Li
Theses and Dissertations
The two essays in my dissertation explore separately the issues related to stock market liquidity and corporate financial distress. My first essay examines the effects of widespread liquidity demand on the stock liquidity. My second essay explores the effect of political connections on the corporate financial distress.
In the first essay, I explore several questions related to the effect of liquidity demand on the individual stock liquidity level. I find that domestic actively managed equity funds in general hold less liquidity than their corresponding benchmarks. This leads them to rely more on the small fraction of liquid assets for immediacy …