# kaal:claim:5454054-010

**Claim.** LER reduces stock price volatility because ongoing consumption-based voucher rewards give shareholders a reason to hold rather than sell, which stabilizes demand for the issuer's stock.

**Type.** mechanism  **Support.** argued

**Holds when.**

- listed companies adopting LER
- shareholders who would otherwise sell to realize gains or meet liquidity needs

**Source quote.**

> LER counteracts selling pressure by offering ongoing consumption-based voucher rewards that incentivize shareholders to retain their investments over the long term. This retention effect stabilizes demand for the company's stock, resulting in lower price fluctuations

**From.** Wulf A. Kaal, *Liquid Equity Rewards* (2025), Benefits for Listed Companies, page 13

**Cite as.** Wulf A. Kaal, Liquid Equity Rewards (2025). SSRN: https://ssrn.com/abstract=5454054

**Verify.** sha256 of source PDF `9f53a865e6f0e5424640779df8f9b50923cd7d05649301dd4cc727144749b6e6` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Kaal%20-%202025%20-%20Liquid%20Equity%20Rewards.pdf

**Topics.** corporate-governance

**Keywords.** stock-volatility, selling-pressure, shareholder-retention, listed-companies

**Canonical form.** This markdown file is the canonical hashed representation of the claim. Its sha256 is the content hash used for attestation.