Drivers of Corporate Bond Market Liquidity: Evidence from Pakistan
This study examines the factors that contribute to corporate bond market liquidity using the data of Term Finance Certificates from March 2009 to March 2018. The results of summary statistics indicate that majority of trades are carried out in large issue and high credit rating corporate bonds. The...
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| Format: | Article |
| Language: | English |
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National University of Sciences and Technology
2021-01-01
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| Series: | NUST Journal of Social Sciences and Humanities |
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| Online Access: | https://njssh.nust.edu.pk/index.php/njssh/article/view/36 |
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| _version_ | 1850221612169691136 |
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| author | Attiya Yasmin Javid Waseem Khan |
| author_facet | Attiya Yasmin Javid Waseem Khan |
| author_sort | Attiya Yasmin Javid |
| collection | DOAJ |
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This study examines the factors that contribute to corporate bond market liquidity using the data of Term Finance Certificates from March 2009 to March 2018. The results of summary statistics indicate that majority of trades are carried out in large issue and high credit rating corporate bonds. The regression results indicate that the most important derivers of bond trading volume are the issue size of bond, bond market rating, market interest rate, bond price volatility and equity market conditions. The results of this study lead to the implications that authorities should take steps to improve the bond market in general and promote the flow of trading of these bonds in a centralized way. This will help the policy makers as well as the market participant for making investment decisions.
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| format | Article |
| id | doaj-art-4d8561c03afd4b4c8195203556a2d9f1 |
| institution | OA Journals |
| issn | 2520-503X 2523-0026 |
| language | English |
| publishDate | 2021-01-01 |
| publisher | National University of Sciences and Technology |
| record_format | Article |
| series | NUST Journal of Social Sciences and Humanities |
| spelling | doaj-art-4d8561c03afd4b4c8195203556a2d9f12025-08-20T02:06:40ZengNational University of Sciences and TechnologyNUST Journal of Social Sciences and Humanities2520-503X2523-00262021-01-0151Drivers of Corporate Bond Market Liquidity: Evidence from PakistanAttiya Yasmin JavidWaseem Khan This study examines the factors that contribute to corporate bond market liquidity using the data of Term Finance Certificates from March 2009 to March 2018. The results of summary statistics indicate that majority of trades are carried out in large issue and high credit rating corporate bonds. The regression results indicate that the most important derivers of bond trading volume are the issue size of bond, bond market rating, market interest rate, bond price volatility and equity market conditions. The results of this study lead to the implications that authorities should take steps to improve the bond market in general and promote the flow of trading of these bonds in a centralized way. This will help the policy makers as well as the market participant for making investment decisions. https://njssh.nust.edu.pk/index.php/njssh/article/view/36Corporate bondsliquiditysizecredit ratingprice volatility |
| spellingShingle | Attiya Yasmin Javid Waseem Khan Drivers of Corporate Bond Market Liquidity: Evidence from Pakistan NUST Journal of Social Sciences and Humanities Corporate bonds liquidity size credit rating price volatility |
| title | Drivers of Corporate Bond Market Liquidity: Evidence from Pakistan |
| title_full | Drivers of Corporate Bond Market Liquidity: Evidence from Pakistan |
| title_fullStr | Drivers of Corporate Bond Market Liquidity: Evidence from Pakistan |
| title_full_unstemmed | Drivers of Corporate Bond Market Liquidity: Evidence from Pakistan |
| title_short | Drivers of Corporate Bond Market Liquidity: Evidence from Pakistan |
| title_sort | drivers of corporate bond market liquidity evidence from pakistan |
| topic | Corporate bonds liquidity size credit rating price volatility |
| url | https://njssh.nust.edu.pk/index.php/njssh/article/view/36 |
| work_keys_str_mv | AT attiyayasminjavid driversofcorporatebondmarketliquidityevidencefrompakistan AT waseemkhan driversofcorporatebondmarketliquidityevidencefrompakistan |