Market Performance – Liquidity or Knowledge? Evidence from the Market for Corporate Control

Willem Dolfsma, Killian McCarthy

Research output: Chapter in Book/Report/Conference proceedingChapterAcademicpeer-review

Abstract

Introduction The definition of the market remains hotly debated. Economists argue that markets are places where supply and demand meet to determine prices. The more ‘liquid’ the markets, they argue – that is, the more that the market facilitates the purchase or sale of an asset without causing drastic change in the asset’s price – the better, because in liquid markets buyers find sellers, and deals get done. Management scholars, however, argue that markets are also locations in which relevant knowledge coalesces. They argue that the more relevant information the better, because in markets with high levels of relevant information, buyers understand sellers, and the deals, and ensure the better deals are concluded.
Original languageEnglish
Title of host publicationEvolutionary Political Economy in Action
Subtitle of host publicationa Cyprus symposium
EditorsHardi Hanappi, Savvas Katsikides, Manuel Scholz-Wäckerle
Place of PublicationAbingdon
PublisherRoutledge
Chapter8
Number of pages12
ISBN (Electronic)9781315470214
ISBN (Print)9781138204096
DOIs
Publication statusPublished - 2017

Publication series

NameRoutledge Advances in Heterodox Economics

Fingerprint

Dive into the research topics of 'Market Performance – Liquidity or Knowledge? Evidence from the Market for Corporate Control'. Together they form a unique fingerprint.

Cite this