Title of article
The effect of stock liquidity on the risk of falling stock prices: Evidence from the Tehran Stock Exchange
Author/Authors
Moanlogho، Mehdi نويسنده Masters Degree student of Accounting, Department of Accounting and Management, South Tehran Branch, Islamic Azad University (IAU), Tehran, Iran , , Madrakian ، Hasan نويسنده ,
Issue Information
ماهنامه با شماره پیاپی 48 سال 2015
Pages
8
From page
1059
To page
1066
Abstract
Liquidity of the stock exchanges plays essential role on investment decisions and it is one of the factors that may influence on stock price. The easier one can buy/sell shares of a firm, the higher liquidity the firm has. In fact, lack of liquidity may lead investors to sell their assets at cheaper prices and it could influence negatively on overall market. The primary objective of this paper is to study the effect of stock liquidity on the risk of falling stock prices. The study chooses historical information of 70 selected firms listed on Tehran Stock Exchange over the period 2006-2012. The results of this survey have indicated that there was a negative and meaningful relationship between stock liquidity and stock price decline.
Journal title
Management Science Letters
Serial Year
2015
Journal title
Management Science Letters
Record number
2313872
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