| Title: |
Research unbundling and market liquidity: Evidence from MiFID II |
| Authors: |
Fu, Anqi; Jenkinson, Tim; Newton, David; Xie, Ru |
| Source: |
European Financial Management ; volume 30, issue 4, page 1759-1786 ; ISSN 1354-7798 1468-036X |
| Publisher Information: |
Wiley |
| Publication Year: |
2023 |
| Collection: |
Wiley Online Library (Open Access Articles via Crossref) |
| Description: |
The second Markets in Financial Instruments Directive (MiFID II) mandated the unbundling of payments for research and trading. This research explores whether the impact of MiFID II differs between large and small firms in terms of analyst coverage and stock liquidity. Focusing on the UK stock markets we find a significant drop in analyst coverage on the Main Market, which leads to a deterioration in market liquidity. In contrast, the requirement of AIM firms to retain a Nominated Adviser, who often provides research coverage, has mitigated the impact of MiFID II. |
| Document Type: |
article in journal/newspaper |
| Language: |
English |
| DOI: |
10.1111/eufm.12460 |
| Availability: |
https://doi.org/10.1111/eufm.12460; https://onlinelibrary.wiley.com/doi/pdf/10.1111/eufm.12460 |
| Rights: |
http://creativecommons.org/licenses/by/4.0/ |
| Accession Number: |
edsbas.7EC9D1F4 |
| Database: |
BASE |