Journal of Applied Corporate FinanceVolume 27, Issue 4 p. 68-74 Original Articles Stock Liquidity and the Cost of Equity Capital in Global Markets Yakov Amihud, Yakov Amihud yamihud@stern.nyu.edu YAKOV AMIHUD is the Ira Leon Rennert Professor of Entrepreneurial Finance, and is the coauthor of Market Liquidity: Asset Pricing, Risk and Crises (Cambridge University Press, 2013), doing research on the effects of liquidity on value and expected return, and on the design and evaluation of securities markets' trading methods. His research also includes the evaluation of corporate financial policies and mergers and acquisitions, on which he published many articles.Search for more papers by this authorAllaudeen Hameed, Allaudeen Hameed Allaudeen@nus.edu.sg ALLAUDEEN HAMEED is Provost's Chair Professor of Finance, Department of Finance, NUS Business School, National University of Singapore. Allaudeen Hameed's research work covers return-based trading strategies, liquidity and return co-movement and has published several papers in leading finance journals.Search for more papers by this authorWenjin Kang, Wenjin Kang kangwenjin@ruc.edu.cn WENJIN KANG is a Professor of Finance at Hanqing Advanced Institute of Economics and Finance at Renmin University of China. Wenjin Kang's research area is empirical asset pricing, with a focus on market microstructure and liquidity. His research works study the cross-sectional and time-series determinants of liquidity, and how liquidity is priced in financial markets. He also conducts researches about the investors' behavior and market anomalies in Chinese market.Search for more papers by this authorHuiping Zhang, Huiping Zhang huiping.zhang@jcu.edu.au HUIPING ZHANG is a senior lecturer of business at JCU Singapore. Huiping Zhang's research interests include the effects of liquidity on stock returns in the U.S. and the global market, and the measurement of liquidity in emerging markets. She also does research on the impact of media coverage on stock liquidity and returns in China stock market. * This paper is based on the findings that are presented in our Journal of Financial Economics article, “The Illiquidity Premium: International Evidence.” Some results were extended to include more recent periods.Search for more papers by this author Yakov Amihud, Yakov Amihud yamihud@stern.nyu.edu YAKOV AMIHUD is the Ira Leon Rennert Professor of Entrepreneurial Finance, and is the coauthor of Market Liquidity: Asset Pricing, Risk and Crises (Cambridge University Press, 2013), doing research on the effects of liquidity on value and expected return, and on the design and evaluation of securities markets' trading methods. His research also includes the evaluation of corporate financial policies and mergers and acquisitions, on which he published many articles.Search for more papers by this authorAllaudeen Hameed, Allaudeen Hameed Allaudeen@nus.edu.sg ALLAUDEEN HAMEED is Provost's Chair Professor of Finance, Department of Finance, NUS Business School, National University of Singapore. Allaudeen Hameed's research work covers return-based trading strategies, liquidity and return co-movement and has published several papers in leading finance journals.Search for more papers by this authorWenjin Kang, Wenjin Kang kangwenjin@ruc.edu.cn WENJIN KANG is a Professor of Finance at Hanqing Advanced Institute of Economics and Finance at Renmin University of China. Wenjin Kang's research area is empirical asset pricing, with a focus on market microstructure and liquidity. His research works study the cross-sectional and time-series determinants of liquidity, and how liquidity is priced in financial markets. He also conducts researches about the investors' behavior and market anomalies in Chinese market.Search for more papers by this authorHuiping Zhang, Huiping Zhang huiping.zhang@jcu.edu.au HUIPING ZHANG is a senior lecturer of business at JCU Singapore. Huiping Zhang's research interests include the effects of liquidity on stock returns in the U.S. and the global market, and the measurement of liquidity in emerging markets. She also does research on the impact of media coverage on stock liquidity and returns in China stock market. * This paper is based on the findings that are presented in our Journal of Financial Economics article, “The Illiquidity Premium: International Evidence.” Some results were extended to include more recent periods.Search for more papers by this author First published: 28 January 2016 https://doi.org/10.1111/jacf.12147Citations: 8 Read the full textAboutPDF ToolsRequest permissionExport citationAdd to favoritesTrack citation ShareShare Give accessShare full text accessShare full-text accessPlease review our Terms and Conditions of Use and check box below to share full-text version of article.I have read and accept the Wiley Online Library Terms and Conditions of UseShareable LinkUse the link below to share a full-text version of this article with your friends and colleagues. Learn more.Copy URL Share a linkShare onFacebookTwitterLinked InRedditWechat Citing Literature Volume27, Issue4Fall 2015Pages 68-74 RelatedInformation