Open Access Journal Article

Microblogging Perceptive and Pricing Liquidity: Exploring Asymmetric Information as a Risk Determinant of Liquidity in the Pandemic Environments

by Jawad Saleemi a,* orcid
a
Business School, Universitat Politècnica de València, Valencia, Spain
*
Author to whom correspondence should be addressed.
EAL  2023, 11; 2(1), 11; https://doi.org/10.58567/eal02010001
Received: 18 February 2023 / Accepted: 1 March 2023 / Published Online: 2 March 2023
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Abstract

Liquidity can be a real phenomenon for execution of the financial holding. Its risk falls in debate to impose a conditional cost on the counterparty. The time-varying liquidity is often linked to the expected fundamental value of an investment. In this work, the microblogging-based informed transaction is examined as a determinant of the liquidity-facilitating cost. Most importantly, this study investigates the economic blockade era and post-pandemic uncertainty. The sentiment indicators were found to be determinants of liquidity. These findings were consistent in the post-pandemic period. However, the investor pessimistic sentiment was a priced risk factor in liquidity during the economic blockade period. Based on the Bayesian theorem, a relativeness was reported between sentiment indicators and the liquidity-facilitating cost. The same findings were depicted in environments of the pandemic era. Nevertheless, the posterior probability indicated an occurrence of the liquidity-associated cost in response to the pessimistic sentiments during the economic blockade period. This quantification may have potential implications in terms of exploring liquidity from the microblogging perceptive.

Keywords: Pandemic; Microblogging-opinionated content; Sentiment Analysis; Pricing Liquidity;
Copyright: © 2023 by Saleemi. This is an open-access article distributed under the terms of the Creative Commons Attribution License (CC BY) (Creative Commons Attribution 4.0 International License). The use, distribution or reproduction in other forums is permitted, provided the original author(s) or licensor are credited and that the original publication in this journal is cited, in accordance with accepted academic practice. No use, distribution or reproduction is permitted which does not comply with these terms.
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ACS Style
Saleemi, J. Microblogging Perceptive and Pricing Liquidity: Exploring Asymmetric Information as a Risk Determinant of Liquidity in the Pandemic Environments. Economic Analysis Letters, 2023, 2, 11. https://doi.org/10.58567/eal02010001
AMA Style
Saleemi J. Microblogging Perceptive and Pricing Liquidity: Exploring Asymmetric Information as a Risk Determinant of Liquidity in the Pandemic Environments. Economic Analysis Letters; 2023, 2(1):11. https://doi.org/10.58567/eal02010001
Chicago/Turabian Style
Saleemi, Jawad 2023. "Microblogging Perceptive and Pricing Liquidity: Exploring Asymmetric Information as a Risk Determinant of Liquidity in the Pandemic Environments" Economic Analysis Letters 2, no.1:11. https://doi.org/10.58567/eal02010001
APA style
Saleemi, J. (2023). Microblogging Perceptive and Pricing Liquidity: Exploring Asymmetric Information as a Risk Determinant of Liquidity in the Pandemic Environments. Economic Analysis Letters, 2(1), 11. https://doi.org/10.58567/eal02010001

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