2016-02-092015-03-01https://hdl.handle.net/10784/7974Market microstructure models imply that informed trading reduces liquidity. We test for the effect of the frequency of new releases, as a proxy of information arrival, on liquidity in the Chilean stock market. We find that news release frequency is strongly related to improved liquidity. Those results appear for both negative a positive news days and are robust using four different measures of liquidity: bid-ask spread, Amihud measure and two versions of the Zero trading variable. We also find evidence consistent with visibility and information arrival interacting for enhancing liquidity.application/pdfenginfo:eu-repo/semantics/workingPaperinfo:eu-repo/semantics/openAccessInformed tradingliquiditynewsemerging marketsmarket microstructureAcceso abierto2016-02-09G10G15G19Agudelo, Diego A.Cortes, Lina M.Vasco, Mateoreponame:Repositorio Institucional Universidad EAFITinstname:Universidad EAFITrepourl:https://repository.eafit.edu.co