Institutional determinants of bid–ask spreads in Caribbean offshore stock exchanges
Institutional determinants of bid–ask spreads in Caribbean offshore stock exchanges
My study contrasts the influence of firm level adoption of shareholder value governance against that of formal institutional quality on listed firm's bid ask spread in a unique sample of eight Caribbean offshore stock exchanges. Using panel data from 146 listed firms from 2004 to 2017 my findings reveal the importance of Worldwide Governance Indicator dimensions of corruption control and regulatory quality in explaining firm's bid ask spreads. Furthermore, formal institutional quality is consistently statistically superior in explaining firm's bid ask spreads than firm level governance adoption. My findings emphasise the importance in considering political economy in offshore financial markets.
Caribbean, Liquidity, Offshore stock exchanges, Small stock markets, Tax havens
Hearn, Bruce
45dccea3-9631-4e5e-914c-385896674dc2
1 December 2021
Hearn, Bruce
45dccea3-9631-4e5e-914c-385896674dc2
Hearn, Bruce
(2021)
Institutional determinants of bid–ask spreads in Caribbean offshore stock exchanges.
Research in International Business and Finance, 58, [101507].
(doi:10.1016/j.ribaf.2021.101507).
Abstract
My study contrasts the influence of firm level adoption of shareholder value governance against that of formal institutional quality on listed firm's bid ask spread in a unique sample of eight Caribbean offshore stock exchanges. Using panel data from 146 listed firms from 2004 to 2017 my findings reveal the importance of Worldwide Governance Indicator dimensions of corruption control and regulatory quality in explaining firm's bid ask spreads. Furthermore, formal institutional quality is consistently statistically superior in explaining firm's bid ask spreads than firm level governance adoption. My findings emphasise the importance in considering political economy in offshore financial markets.
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Accepted/In Press date: 7 August 2021
e-pub ahead of print date: 7 August 2021
Published date: 1 December 2021
Keywords:
Caribbean, Liquidity, Offshore stock exchanges, Small stock markets, Tax havens
Identifiers
Local EPrints ID: 453236
URI: http://eprints.soton.ac.uk/id/eprint/453236
ISSN: 0275-5319
PURE UUID: 459b0ddc-9f43-46b8-b428-ae99ee1f8c18
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Date deposited: 11 Jan 2022 17:42
Last modified: 17 Mar 2024 03:52
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