There are papers on determinants of stock market liquidity. To start with you can see the following two papers with link:

http://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.35.3257&rep=rep1&type=pdf

http://www.econstor.eu/bitstream/10419/60642/1/363003657.pdf

consider inflation since it could be a major factor

in addition watch direction of capital flows  nominal interest rate  indigenous central bank policy 

preference for risk trade over liquidity trades

These responses are extremely useful

Interest rates, policies of the Central bank/Govt., other macro economic factors like inflation, GDP etc, can also be the determinants of liquidity in the stock market,

While I agree that all these factors influence stock market liquidity, I want to suggest that the float ratio, the range and diversity of listed companies and the presence of analysts are crucial factors.

The high degree of ownership concentration among long term strategic investors in some markets makes for a relatively small float, which then impacts negatively on stock market liquidity.

Factors affecting stock market liquidity:

- trading volume (inestment interest) this is a temporal factor sometimes there sometimes not

- free float and number of shares and number of market participants i.e. market depth and market width

- stock market and financial market  microstructures   

Dear Carl Robinson

Greetings,

Many factors may be effect of stock market liquidity:, such as market capitalization , trading  size , number of trading , leverage variable , size of firm , profitability ..... So , these factors need to test to show the results . Finally find the attached file about your topic,

Best Regards,

Thank you

I would say that the most important factor is te market-making mechanism itself. Markets with market-makers tend to have lower liquidity cost than brokered markets. However, if you compare listed securities on the same market, the "determinants" are many including trading volume, firms size, ownership structure, and the price of the security itself. Good Luck....

https://www.researchgate.net/publication/285590240_Sensitivity_Analysis_of_Macroeconomic_Variables_and_Stock_Returns_A_Cross-Country_Comparison_between_Bangladesh_and_India

Book Sensitivity Analysis of Macroeconomic Variables and Stock Re...

Corporate governance as a critical determinant of stock market liquidity. You may read the following paper;

http://www.tandfonline.com/doi/full/10.1080/00036846.2015.1137552#.VxMh1_l969I

Hi,

You may be interested by this paper:

Herd behavior and equity market liquidity: Evidence from major markets

International review of Financial Analysis, december 2016, vol 48,

Pages 140-149

Emilios C. Galariotis, Styliani-Iris Krokida, Spyros I. Spyrou

Best regards.

https://lirias.kuleuven.be/bitstream/123456789/203006/1/PUBLISHED