Professional paper
Stock Market Liquidity: Comparative Analysis of Croatian and Regional Markets
Vladimir Benić
; Privredna banka Zagreb, Zagreb
Ivna Franić
; VIPnet usluge, Zagreb
Abstract
On the Croatian stock market liquidity has never been in the focus of academic research thus we find it necessary to observe liquidity at the aggregate level. This paper observes multi-dimensional liquidity through the impact of turnover on price change together with several one-dimensional measures. In our empirical research we applythe
illiquidity measureto seven different stock markets. We focus on the Croatian stock market as compared to other markets in the Central and Eastern Europe and German market. The results of the research indicate a substantial level of illiquidity in the Croatian and other developing markets.
Keywords
liquidity; stock market; Croatia; developing stock markets; Amihud’s illiquidity ratio; liquidity measures
Hrčak ID:
34860
URI
Publication date:
2.2.2009.
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