Empirical Analysis of Factors Affecting Stock Liquidity --Taking Ping An Bank as an Example

Abstract

With the continuous development of the Chinese economy, the stock market has become one of the important choices for investors, and the liquidity of the stock market has always been the focus of investors. Ping An Bank is one of China's well-known commercial banks and occupies an important position in the A-share market. The goal of this paper is to study the relationship between stock liquidity and return volatility, risk factors, circulation market value and cross-period of risk factors. Through ordinary least squares (OLS) regression analysis, it can be found that earnings volatility and circulating market value have an impact on stock liquidity significantly, that is, the higher the earnings volatility and circulating market value, the higher the stock liquidity. Risk factors and cross-terms of risk factors have no significant influence on stock liquidity. These findings have important implications for investors and market regulators to help them more fully assess stock value and risk and make more informed investment decisions.