Firm's Information Environment and Stock Liquidity : Evidence from Tunisian Context,

TL;DR

This study examines how public disclosure and private information influence stock liquidity in Tunisia, finding that public information does not impact liquidity due to investor distrust, while private information does.

Contribution

It provides new insights into the Tunisian market, showing the limited effect of public disclosures on liquidity and highlighting investor skepticism.

Findings

No relation between public and private information.

Public information has no effect on stock liquidity.

Private information influences liquidity.

Abstract

This paper analyzes the relationship between public disclosure, private information and stock liquidity in Tunisian context using a sample of 41 listed firms in the Tunis Stock Exchange in 2007. First, we find no evidence that there is a relation between public and private information. Second, Tunisian investors do not trust the information disclosed in both annual reports and web sites, consequently it has no effects on stock liquidity, in contrast with private information.