H kazemi; N rahimian; B havaei
Volume 9, Issue 36 , January 2012, , Pages 123-148
Abstract
The purpose of this study is to gather evidence about the effect of information transparency on stock liquidity uncertainty and also the effect of stock liquidity uncertainty on the firm value. In order to measure the information transparency, two measure of auditing quality and non-smoothing profits ...
Read More
The purpose of this study is to gather evidence about the effect of information transparency on stock liquidity uncertainty and also the effect of stock liquidity uncertainty on the firm value. In order to measure the information transparency, two measure of auditing quality and non-smoothing profits have been used. For assessing the stock liquidity uncertainty, four measures have been used, including liquidity variation, liquidity distribution skewness (as a measure for assessing extreme illiquidity), co-variability of stock liquidity with the market liquidity and co-variability of stock liquidity with the market returns.
The results reveal that the variable of auditing quality has a meaningful negative relation with four measures of liquidity uncertainty, and the variable of non- smoothing profits has only a meaningful negative relation with the liquidity distribution skewness, and has a meaningful positive relation with other measures. Also, the Tobin’s Q variable as a measures (criterion) of the firm value has shown a meaningful negative relation with the criteria of liquidity variation and liquidity co-variability of stock with the market liquidity. It has a positive meaningful relation with the measure of relation with the measure of liquidity distribution skewness and co-variability of stock liquidity with the marke
Mehdi Moradzadeh Fard; Mina Aboohamzeh
Volume 8, Issue 32 , January 2011, , Pages 73-102
Abstract
Regarding the critical role of liquidity in asset price discovery, sharing of financial risk, increasing of expected return and transaction costs reduction, it is important to know about the effective factors. This study examines the effects of the quality of corporate disclosure on stock ...
Read More
Regarding the critical role of liquidity in asset price discovery, sharing of financial risk, increasing of expected return and transaction costs reduction, it is important to know about the effective factors. This study examines the effects of the quality of corporate disclosure on stock liquidity. Because increasing disclosure quality reduces information asymmetry and reducing information asymmetry increases market liquidity, so the main hypothesis of this study is that disclosure quality has effect on stock liquidity. In this study, for separating various details impacts of disclosure quality, we used timeliness and reliability and to determine stock liquidity, we used 15 different trading and information liquidity measures. 112 Tehran Security Exchange listed companies, from 1384 to 1388 are chosen and research hypothesis was tested by linear multivariable regression in pre and post-test. The results indicate that disclosure quality has positive effect on stock liquidity. Also, they show positive effect of reliability on stock liquidity.
