Evaluation of the association between company performance and Iran’s stock market liquidity

Advances in Mathematical Finance and Applications

مقاله 5، دوره 3، شماره 2، شهریور 2018، صفحه 59-68   

نوع مقاله: Research Paper

شناسه دیجیتال (DOI): 10.22034/amfa.2018.540831

نویسندگان

Zahra Amirhosseini^{* 1}؛ Sadegh Hadipour²

¹DEPARTMENT OF MANAGEMENT, SHAHR-E-QODS BRANCH, ISLAMIC AZAD UNIVERSIYU

²Department of Accounting, Shahr-e- Qods Branch, Islamic Azad University, Tehran, Iran

چکیده

This research studies the companies’ effectiveness and performance relationship with stock market liquidity in Tehran Stock Exchange during 2010-2015. Simultaneously, in the study, the three indicators: return on assets, return on investment and Tobin's Q ratio were applied as a measure of the performance and bid-ask spread as a measure of liquidity, bid-ask spread to the stock market. This research has a practical purpose and descriptive correlation in research nature and also post-event research. The under study population comprises all companies accepted in Tehran Stock Exchange during the intended period, 198 companies selected with systematic elimination sampling to be studied and analyzed. The results show a positive and significant association between companies’ performance and Stock market liquidity.

کلیدواژه‌ها

Company's performance؛ Return on assets؛ Return on equity؛ Tobin's Q ratio؛ Bid-ask spread

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