Market makers boost stock liquidity during pandemic, outperforming highly liquid stocks.
Market makers designated by KRX can boost stock liquidity, especially for newly designated stocks. The liquidity increase is more significant for these stocks compared to those without a designated market maker. Stocks with consecutively designated market makers show lower liquidity improvement. During the COVID-19 pandemic, liquidity was mainly influenced by funds inflow and market maker activities. Overall, market makers play a crucial role in enhancing stock liquidity.