Stock Liquidity And Enterprise Value

As an important factor of capital market,stock liquidity directly shows the speed and cost of securities trading and plays an important supporting role in the play of many functions of capital market.Influenced by domestic policies and the world economic environment,the domestic capital market is flourishing and various reforms are proceeding in an orderly manner.For example,in the process of stock issuance,the "registration system" is implemented through legislation,and a new system with goals and plans is established for the development of the new third board,the growth enterprise board,the margin and short selling,etc.Relying on reform and innovation,the development of real economy can get more sufficient capital support.By summarizing the Chinese and foreign literatures,it is found that when discussing stock liquidity,academia tends to discuss the correlation between asset pricing and return rate.The purpose of modern enterprise operation is to make profits--this is the concentrated reflection of enterprise value.In the decision-making and implementation activities,the management should re-examine the company value and stock liquidity,and make a good distinction of their roles,which is of significant significance to the sustainable operation of the company,the improvement of capital operation efficiency and the improvement of governance capability.This paper takes the listed companies in the film and television culture industry in China’s A-share market from 2014 to 2017 as the research object,and makes an empirical test on the relationship between stock liquidity and company value.After that,it explores and analyzes several transmission mechanisms of stock liquidity affecting corporate value.The main conclusions are as follows: First,stock liquidity is positively related to corporate value,that is,companies with higher stock liquidity tend to have higher corporate value.Second,during the period of 2014-2017,investors in our country had a high degree of overall rationality and basically followed the value investment strategy.Third,the positive correlation between stock liquidity and company value cannot be explained by salary-performance mechanism.Although managers will " dig" information from stock prices to guide corporate governance,equity incentive is not the driving force for managers to work hard,proving that the salary system of listed companies in China may lack effectiveness.Fourth,the intervention of institutional investors may have an impact on listed companies,but this paper does not make an in-depth analysis of this impact.Fifth,after changing the agent variables of liquidity,the research results are still consistent and steady,proving that the research results in this paper are reliable.Finally,the paper gives policy suggestions from the perspectives of regulatory authorities,listed companies and investors.