Corporate ownership structure and stock liquidity of Islamic and non-Islamic stocks: The Indonesian experience

This study aims to analyse the effect of corporate ownership structure on the liquidity of Islamic and non-Islamic stocks in the manufacturing industry of the Indonesia Stock Exchange and prove whether the level of information asymmetry is lower than non-Islamic stocks. Sample data uses manufacturing firms listed in 2010-2013 from the Indonesia Stock Exchange. 46 stocks are on the List of Islamic Securities of Indonesia Stock Exchange, and 51 stocks are not listed. The results are Islamic stocks' relative spread is lower than non-Islamic stocks in the manufacturing industry. Insider and blockholder ownerships have no significant effects on the relative spread, while domestic and foreign institutional ownerships have significant influence. In terms of liquidity depth, insider ownership does not have significant influence on Islamic stock depth, while other variables have a significant influence. Foreign institutional ownership has no significant effect on non-Islamic stock depth, while other variables are a significantly influence.