(Institute of Social Sciences, 2018)
Güloğlu, Zeynep; Ekinci, Cumhur Enis; 511941; Management; İşletme
Market liquidity is defined as the ability to trade quickly, with low transactions costs, at any time and with no or a minimal impact on price. Liquidity is crucial for well functioning of markets. It has many implications for traders, investors, exchanges, regulators, and the listed firms. Thus, an accurate understanding of liquidity concepts and its determinants is essential. This dissertation consists of three main sections relating to liquidity. We start with a comprehensive review of the frameworks currently available for understanding definitions and determinants of liquidity. We put a special emphasis on various liquidity measures discussed in the literature about equity markets. Indeed, measures that we present have specific properties and capture certain aspects of liquidity. Our purpose, however, is to highlight the differences and similarities of these measures and produce a more complete understanding of their limitations and extensions.