The Effect of Stock Liquidity on the Firm’s Investment and Production
研究发现股票流动性不足会提高企业资本成本，减少固定资产、研发和库存投资，并促使企业采用劳动密集型生产方式，对财务受限和非受限企业均有影响。
Abstract We propose that stock market liquidity affects corporate investment and production. Illiquidity, which raises firms’ cost of capital, lowers investment in capital assets, R&D, and inventory. This effect holds after we control for endogeneity using exogenous liquidity events, the 2001 decimalization, and the 1997 Nasdaq reform and after employing instrumental variable estimation. Illiquidity affects investment regardless of firms’ financial constraints. Consequently, illiquidity induces firms to adopt less capital-intensive production processes. Illiquid firms have higher marginal productivity of capital, greater labor input increases for given increases in assets, and lower operating leverage, which means lower reliance on fixed costs.