The relationship between stock liquidity, firm performance and value in Ho Chi Minh stock exchange
Abstract
The aim of this paper is to investigate the relationship between stock liquidity
and firm performance. Tobin’s Q is used to be the proxy for firm performance, while the
relative effective spread is the measurement of stock liquidity. The statistical sample
includes 100 firms listed on Hochiminh Stock Exchange in the period from 2010 to 2014.
The paper documents that higher liquidity of stock would yield higher firm performance,
consistent to many previous researches. The conclusion is draw from different tests such
as Panel Least Squares and Granger Causality Test on different models with the main
dependant variable is Tobin’s Q