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

Abstract

This paper analyzes the relationship between public disclosure, private information and stock liquidity using a sample of 41 listed firms in the Tunis Stock Exchange in 2007. First, our results provide evidence that public and private information are independent. Second, Tunisian investors do not rely on the information disclosed in both annual reports and web sites to make investment decisions, consequently it has no effects on stock liquidity, in contrast with private information.

Keywords: corporate information disclosure, private information, stock liquidity, emergent market

JEL Classification: M41, G10, G14, O55