National Pension Fund and Stock Liquidity: Evidence from Korea
By Eunyoung Cho & Cheol-Won Yang We investigate the impact of the national pension’s trading on individual stock liquidity. While prior research has primarily focused on the effects of national pension funds on market performance or volatility, this paper shifts attention to liquidity, a relatively underexplored dimension of market quality. Utilizing detailed transaction-level data from the National Pension Service (NPS) of Korea between 2010 and 2019, we assess the relationship between NPS trading activity and stock liquidity by employing both...
