Stock Market Liquidity in Chile

Author/Editor:

Luis Brandao-Marques

Publication Date:

November 16, 2016

Electronic Access:

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Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary:

Chile has a large but relatively illiquid stock market. Global factors such as global risk appetite and monetary policy in advanced economies are key cyclical determinants of liquidity in Chilean equities. Evidence from a cross-section of emerging markets suggests strong protection of minority shareholders can help improve stock market liquitidity. Currently, illiquid in Chilean may have to pay 3½ percent more as cost of equity. Corporate governance should be improved, namely through the adoption of a stewardship code.

Series:

Working Paper No. 16/223

Subject:

English

Publication Date:

November 16, 2016

ISBN/ISSN:

9781475554656/1018-5941

Stock No:

WPIEA2016223

Price:

$18.00 (Academic Rate:$18.00)

Format:

Paper

Pages:

29

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