Abstract
This study uses a difference-in-differences approach to examine the influence of market-maker agreements on liquidity alterations in Boursa Kuwait. Our research indicates that signing a market-maker agreement augments the number of executed trades, turnover, and trading volume while decreasing instances of zero trades, bid–ask spread, and Amihud Illiquidity within the first week. Interestingly, these agreements do not affect stock return volatility. Our study extends the knowledge about the role of market makers in emerging markets. JEL Codes: G10, G18, O53
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