The Impact of Stock Liquidity on the Value Relevance of Accounting Information: Evidence from the Tick Size Pilot Program

Activity: Talks or PresentationsOther Invited Talks or Presentations


This study investigates the effect of stock liquidity on the value relevance of earnings, leveraging a natural experiment - the 2016 tick size pilot program - to establish causality. Using a sample of firms participating in the program, I examine whether increased stock liquidity leads to improved value relevance of accounting information. The findings have important implications for policymakers as my findings could inform future policy decisions regarding market structure, trading rules, and disclosure requirement; market participants to better understand the role of stock liquidity in the valuation of firms and the usefulness of accounting information, informing investment strategies, risk management practices, and corporate decision-making; and to the academic literature, our study could provide a better understanding of the relationship between stock liquidity and the value relevance of accounting information.
Period19 Apr 2023
Event titlePostgraduate Seminar Series
Event typePublic Lecture