The Impact of the Market Makers on the Stocks Liquidity Negotiated in the São Paulo’s Stock Exchange

Authors

  • Marcelo Augusto Ambrozini
  • Luiz Eduardo Gaio
  • Carlos Alberto Grespan Bonacim
  • Eduardo Garbes Cicconi

Keywords:

Stock Market, Liquidity, Market Makers, Structural Breaking.

Abstract

As Assets liquidity transitioned in the shareholding market exerts a basic role in the construction of investors' portfolios, the objective of this study is to find empirical evidences on the relationship between market makers actuation and the increase in the volatility of Brazilian opened capital companies stocks in the period of March 2003 through December of 2007. To test the structural breaking in time series, the test of Chow was applied, in which it was desired to verify if the there were significant shifts of stocks negotiation volume after the market makers recruitment. The achieved results allowed concluding that there're significant evidences that market makers recruitment has positive influence on the negotiated stocks liquidity increase in Bovespa, making greater negotiations easiness of these headings in the market by investors.

Published

2009-10-07

How to Cite

AMBROZINI, M. A.; GAIO, L. E.; BONACIM, C. A. G.; CICCONI, E. G. The Impact of the Market Makers on the Stocks Liquidity Negotiated in the São Paulo’s Stock Exchange. Contabilidade Vista & Revista, [S. l.], v. 20, n. 3, p. 15–38, 2009. Disponível em: https://revistas.face.ufmg.br/index.php/contabilidadevistaerevista/article/view/649. Acesso em: 30 jun. 2024.

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