Does liquidity drive stock market returns? the role of investor risk aversion

In this paper, we explore the relations between liquidity, stock returns, and investor risk aversion as captured by the variance risk premium (VRP). This is motivated by theoretical and empirical evidence in the literature which suggests that investor risk aversion negatively correlates with asset l...

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Bibliographic Details
Main Authors: Zhang, Qingjing, Choudhry, Taufiq, Kuo, Jing-Ming, Liu, Xiaoquan
Format: Article
Language:English
Published: 2021
Subjects:
Online Access:https://eprints.nottingham.ac.uk/65412/