A Comparison on Liquidity and Tobin’s Q Ratio of Growth and Value stock in Accepted Companies in Tehran Stock Exchange

The present paper compares liquidity and Tobinʹs Q ratio of growth and value stock, on one hand, and examines the relationship between ratio of book value to market value (B/M) of stocks and stock liquidity. Research sample is composed of 69 companies during the period between 2002 and 2010. Variance analysis method is used here to examine a significant difference between liquidity and Tobinʹs Q ratio of growth and value stocks. Research findings indicate a significant negative relationship between (B/M) ratio and liquidity. Accordingly, growth stock (especially small growth stock) has higher liquidity degree and Tobin’s Q ratio than value stock. Also, results show a significant negative correlation of liquidity and Tobin’s Q ratio between the two stock types.