We investigate the relation between institutional ownership and commonality in liquidity and whether this relation differs across country-level institutional and information environments. Using a comprehensive dataset for firms across 40 countries for the period between 2000 and 2016, we find that institutional ownership is negatively associated with stock liquidity commonality. In addition, a firm’s information environment plays the moderating role in the relation between institutional ownership and commonality in stock liquidity. Importantly, we document that the negative association between institutional ownership and liquidity commonality is stronger for firms in countries with weak institutional characteristics or less transparent information environments. Our findings provide additional insights into the role of institutional investors as a demand-side factor of liquidity commonality in international financial markets.

我们研究了机构所有权和流动性通用性之间的关系，以及这种关系在国家级机构和信息环境之间是否存在差异。使用2000年至2016年期间针对40个国家/地区的公司的综合数据集，我们发现机构所有权与股票流动性的通用性负相关。此外，公司的信息环境在机构所有权和股票流动性的公共性之间的关系中起调节作用。重要的是，我们证明，对于制度特征薄弱或信息环境透明度较低的国家/地区的公司而言，机构所有权和流动性通用性之间的负相关性会更强。