| Title |
The impact of liquidity, subsequent share issuance, and ESG risk indicator on share value |
| Authors |
Vasiliauskaitė, Deimantė ; Butkutė, Kotryna ; Rusilaitė, Miglė ; Sadauskaitė, Gabija ; Meng, Wen Ting |
| DOI |
10.3991/itdaf.v4i1.59447 |
| Full Text |
|
| Is Part of |
IETI transactions on data analysis and forecasting (iTDAF).. Wien : International Association of Online Engineering (IAOE). 2026, vol. 4, no. 1, p. 19-34.. eISSN 2959-0442 |
| Keywords [eng] |
liquidity ; share issuance ; environmental social and governance (ESG) risk indicator ; share value ; event study ; investor behavior |
| Abstract [eng] |
This study examines the impact of liquidity, subsequent share issuance, and environmental, social, and governance (ESG) risk indicators on the value of publicly traded shares. By integrating theoretical insights with empirical analysis, the research examines both financial and non-financial factors that influence share performance. Liquidity was assessed through bid– ask spreads and purchase-to-sale volume ratios for companies listed on the Nasdaq Stockholm exchange. Results indicate that larger firms exhibit narrower spreads and greater market depth, while smaller firms experience higher illiquidity and reduced investor demand. The effect of subsequent share issuances was analyzed using an event study approach, measuring abnormal and cumulative abnormal returns (AR and CAR) within a seven-day event window. Findings suggest that market reactions depend on investor perceptions: positive when capital is raised for expansion and negative when issuance signals dilution or financial weakness. The analysis of ESG risk indicators reveals that lower ESG risk ratings are correlated with greater investor trust, transparency, and higher share valuation, while higher risk ratings are associated with weaker market performance. Overall, the results confirm that strong liquidity, transparent and strategically motivated share issuances, and robust ESG performance jointly enhance share value and investor confidence in modern financial markets. |
| Published |
Wien : International Association of Online Engineering (IAOE) |
| Type |
Journal article |
| Language |
English |
| Publication date |
2026 |
| CC license |
|
