Stock Liquidity and the Pricing of Earnings: A Comparison of China's Floating and Nonfloating Shares

doi:10.2753/REE1540-496X5003S308

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	Stock Liquidity and the Pricing of Earnings: A Comparison of China's Floating and Nonfloating Shares
	Lou, Fang 1; Wang, Jiwei 2; Yuan, Hongqi 3
刊名	EMERGING MARKETS FINANCE AND TRADE
	2014-05-01
卷号	50 页码:140-157
关键词	China earnings pricing stock liquidity
ISSN号	1540-496X
DOI	10.2753/REE1540-496X5003S308
英文摘要	The reform aimed at converting nonfloating shares to floating shares in China provides a setting in which shares are subject to different levels of liquidity constraints. We show that the severity of these constraints is inversely related to the extent to which earnings information is reflected in share prices. Specifically, before the reform, transfer prices of nonfloating shares reflect much less earnings information than the market prices of floating shares. After the reform, however, transfer prices of nonfloating shares reflect more earnings information, although the weights are still less than those found in market prices. Thus, China's unique setting shows that share liquidity affects the way earnings are priced in stock.
WOS研究方向	Business & Economics ; International Relations
语种	英语
出版者	ROUTLEDGE JOURNALS, TAYLOR & FRANCIS LTD
WOS记录号	WOS:000349848000009
内容类型	期刊论文
源URL	[http://10.2.47.112/handle/2XS4QKH4/1756]
专题	上海财经大学
通讯作者	Wang, Jiwei
作者单位	1.Shanghai Univ Finance & Econ, Sch Econ, Shanghai, Peoples R China; 2.Singapore Management Univ, Sch Accountancy, Singapore 178902, Singapore; 3.Fudan Univ, Sch Management, Shanghai 200433, Peoples R China
推荐引用方式 GB/T 7714	Lou, Fang,Wang, Jiwei,Yuan, Hongqi. Stock Liquidity and the Pricing of Earnings: A Comparison of China's Floating and Nonfloating Shares[J]. EMERGING MARKETS FINANCE AND TRADE,2014,50:140-157.
APA	Lou, Fang,Wang, Jiwei,&Yuan, Hongqi.(2014).Stock Liquidity and the Pricing of Earnings: A Comparison of China's Floating and Nonfloating Shares.EMERGING MARKETS FINANCE AND TRADE,50,140-157.
MLA	Lou, Fang,et al."Stock Liquidity and the Pricing of Earnings: A Comparison of China's Floating and Nonfloating Shares".EMERGING MARKETS FINANCE AND TRADE 50(2014):140-157.