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Liquidity of assets and liquidity of shares: the example of the Warsaw Stock Exchange

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  • Agata Gniadkowska-Szymańska

    (University of Lodz, Faculty of Economics and Sociology, Department of Capital Market and Investments)

Abstract

The purpose of the article is to present the problem of financial liquidity and the liquidity of assets on the financial market. The integration of these two approaches should show if there will be any relationship between the liquidity of the company’s assets and the liquidity of its securities listed on the capital market. The applied research methodology is similar to that described by Goplan, Kadan, and Pevzner (2012) in “Asset liquidity and stock liquidity”. Studies were conducted on a group of companies listed on the Warsaw Stock Exchange in the period: 30 April 2012 – 31 December 2017. Conducting several separate studies using various measures describing liquidity on the data obtained for the Polish capital market confirms the hypothesis put forward at the beginning of the study that there is a statistically significant relationship between the liquidity of the shares and the liquidity of the company’s assets

Suggested Citation

  • Agata Gniadkowska-Szymańska, 2021. "Liquidity of assets and liquidity of shares: the example of the Warsaw Stock Exchange," Bank i Kredyt, Narodowy Bank Polski, vol. 52(1), pages 1-22.
    • Handle: RePEc:nbp:nbpbik:v:52:y:2021:i:1:p:1-22
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    References listed on IDEAS

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    More about this item

    Keywords

    financial liquidity; economic condition of companies; capital market; liquidity of shares;
    All these keywords.

    JEL classification:

    • G12 - Financial Economics - - General Financial Markets - - - Asset Pricing; Trading Volume; Bond Interest Rates
    • G13 - Financial Economics - - General Financial Markets - - - Contingent Pricing; Futures Pricing
    • G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading

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