A study on the effect of stock liquidity and stock liquidity risk on information asymmetry: Evidence from Tehran Stock Exchange
This study investigates the effect of stock liquidity and stock liquidity risk on information asymmetry in Tehran Stock Exchange (TSE) listed companies. In this study, the bid-ask spread is considered as the criterion of information asymmetry. In addition, stock trade volume and the number of stock...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
Growing Science
2014-05-01
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| Series: | Management Science Letters |
| Subjects: | |
| Online Access: | http://www.growingscience.com/msl/Vol4/msl_2014_87.pdf |
| _version_ | 1818117684041089024 |
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| author | Mohammad Hassani Najme Harati Nik |
| author_facet | Mohammad Hassani Najme Harati Nik |
| author_sort | Mohammad Hassani |
| collection | DOAJ |
| description | This study investigates the effect of stock liquidity and stock liquidity risk on information asymmetry in Tehran Stock Exchange (TSE) listed companies. In this study, the bid-ask spread is considered as the criterion of information asymmetry. In addition, stock trade volume and the number of stock trades are considered as the criteria of stock liquidity. Some variables such as size, stock price, beta and growth are also considered as control variables. To test the hypotheses of the survey, 202 TSE listed companies over the period 2007-2012 are considered based on the multiple regression (Panel) method. The evidence shows that both proposed criteria, stock liquidity criterion as well as the stock trade volume and the number of stock trades, had negative effects on information asymmetry, but this effect is not statistically meaningful. In addition, evidence shows that stock liquidity risk had positive effect on information asymmetry, which is statistically meaningful. Research results also show that firm size and beta had positive and meaningful effects on information asymmetry. Finally, the results show that growth and stock price had negative meaningful effects on information asymmetry. |
| first_indexed | 2024-12-11T04:42:19Z |
| format | Article |
| id | doaj.art-77b8d723aa034693a91049af5a9c4171 |
| institution | Directory Open Access Journal |
| issn | 1923-2934 1923-9343 |
| language | English |
| last_indexed | 2024-12-11T04:42:19Z |
| publishDate | 2014-05-01 |
| publisher | Growing Science |
| record_format | Article |
| series | Management Science Letters |
| spelling | doaj.art-77b8d723aa034693a91049af5a9c41712022-12-22T01:20:36ZengGrowing ScienceManagement Science Letters1923-29341923-93432014-05-0145997100210.5267/j.msl.2014.3.012A study on the effect of stock liquidity and stock liquidity risk on information asymmetry: Evidence from Tehran Stock ExchangeMohammad Hassani Najme Harati NikThis study investigates the effect of stock liquidity and stock liquidity risk on information asymmetry in Tehran Stock Exchange (TSE) listed companies. In this study, the bid-ask spread is considered as the criterion of information asymmetry. In addition, stock trade volume and the number of stock trades are considered as the criteria of stock liquidity. Some variables such as size, stock price, beta and growth are also considered as control variables. To test the hypotheses of the survey, 202 TSE listed companies over the period 2007-2012 are considered based on the multiple regression (Panel) method. The evidence shows that both proposed criteria, stock liquidity criterion as well as the stock trade volume and the number of stock trades, had negative effects on information asymmetry, but this effect is not statistically meaningful. In addition, evidence shows that stock liquidity risk had positive effect on information asymmetry, which is statistically meaningful. Research results also show that firm size and beta had positive and meaningful effects on information asymmetry. Finally, the results show that growth and stock price had negative meaningful effects on information asymmetry.http://www.growingscience.com/msl/Vol4/msl_2014_87.pdfStock LiquidityStock Liquidity RiskInformation AsymmetryBid-Ask SpreadStock Trade Volume and Number of Stock Trades |
| spellingShingle | Mohammad Hassani Najme Harati Nik A study on the effect of stock liquidity and stock liquidity risk on information asymmetry: Evidence from Tehran Stock Exchange Management Science Letters Stock Liquidity Stock Liquidity Risk Information Asymmetry Bid-Ask Spread Stock Trade Volume and Number of Stock Trades |
| title | A study on the effect of stock liquidity and stock liquidity risk on information asymmetry: Evidence from Tehran Stock Exchange |
| title_full | A study on the effect of stock liquidity and stock liquidity risk on information asymmetry: Evidence from Tehran Stock Exchange |
| title_fullStr | A study on the effect of stock liquidity and stock liquidity risk on information asymmetry: Evidence from Tehran Stock Exchange |
| title_full_unstemmed | A study on the effect of stock liquidity and stock liquidity risk on information asymmetry: Evidence from Tehran Stock Exchange |
| title_short | A study on the effect of stock liquidity and stock liquidity risk on information asymmetry: Evidence from Tehran Stock Exchange |
| title_sort | study on the effect of stock liquidity and stock liquidity risk on information asymmetry evidence from tehran stock exchange |
| topic | Stock Liquidity Stock Liquidity Risk Information Asymmetry Bid-Ask Spread Stock Trade Volume and Number of Stock Trades |
| url | http://www.growingscience.com/msl/Vol4/msl_2014_87.pdf |
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