Market 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
