Size Matters: Indian Stock Market Liquidity Linked to Company Size
The article explores how trading costs in the Indian stock market are connected, affecting the liquidity of individual stocks. By analyzing different aspects of liquidity, the researchers found that market-wide liquidity and individual securities' liquidity move together. They also discovered that larger companies tend to have a stronger relationship between market-wide liquidity and their own liquidity. This size effect suggests that bigger companies are more influenced by overall market conditions when it comes to trading costs.