Affordable Access

deepdyve-link
Publisher Website

Stock market liquidity and macro-liquidity shocks: Evidence from the 2007–2009 financial crisis

Authors
  • Florackis, Chris
  • Kontonikas, Alexandros
  • Kostakis, Alexandros1, 2, 3, 4, 5, 6, 7, 8
  • 1 Department of Economics, Finance and Accounting
  • 2 University of Liverpool Management School
  • 3 Accounting and Finance Subject Area
  • 4 Adam Smith Business School
  • 5 University of Glasgow
  • 6 Accounting and Finance Division
  • 7 Manchester Business School
  • 8 University of Manchester
Type
Published Article
Journal
Journal of International Money and Finance
Publication Date
Jan 01, 2014
Volume
44
Pages
97–117
Identifiers
DOI: 10.1016/j.jimonfin.2014.02.002
Source
Elsevier
Keywords
License
Unknown

Abstract

•We examine the link between micro-liquidity, macro-liquidity and stock prices.•We account for the impact of the recent financial crisis (2007–2009).•Macro-liquidity shocks are transmitted to micro-liquidity-sorted stock portfolios.•Outside the crisis, expansionary macro-liquidity shocks benefit liquid stocks.•Interest rate cuts during the crisis reinforced “flight to safety” trading.

Report this publication

Statistics

Seen <100 times