ISSN: 2225-8329
Open access
In this paper, the relationship between performance and liquidity of shares listed on the Tehran Stock Exchange investigated. In countries where the capital market is one of the main sources of financing units their business, a lot of research is in this field, that the rapid growth of the capital market in Iran, the necessity of such research is more evident. The present study with examined data from 154 companies listed in Tehran Stock Exchange between 1383 and 1388 with the combinational methods, the relationship between business performance and liquidity has been studied. This study supports the theory of representation and feedback between performance scales and stock Liquidity, using by multiple regressions has been evaluated and compared. The results of investigation show that between the liquidity and performance scales a strong correlation was observed. By comparing the two performance measures (return on assets and Q Tobin index) indicators that Q Tobin index is better to use of market values,because that more suitable for studying the relationship between performance and the company's liquidity.
Shanazariyan. (1389). The relationship between Institutional ownership and property of Major as aspects of corporate governance with firm performance of listed companies in Tehran Stock Exchange, MSc thesis of Management and Accounting, Shahid Beheshti University.
Shirazian, A. (1384). The relationship between size and performance of investment companies their liquidity. MSc thesis, School of Management, Tehran University.
Momeni, M., and Fa-alQayumi, (1386). Statistical analysis using SPSS. Tehran, new book.
Nobahar. (1388). The relationship between liquidity and stock market returns, Thesis Faculty of Management, Tehran University.
Velk, H. (1387). Theory of accounting (1) Translation: Karami, and Tajik, Tehran: Looking knowledge.
Agrawal, A., & Hnoeber, C. R. (1996). Firm Performance and Mechanisms to Control Agency Problems Between Managers and Shareholders. Journal of financial and quantitative analysis.
Bhide, A. (1993). The hidden costs of stock market liquidity. Journal of Financial Economics.
Coffee, J. (1991). Liquidity versus control: The institutional investor as corporate monitor. Columbia Law Review.
Dijk, E., Cremer, D., Mulder, L., & Stouten, J. (2008). How do we react to feedback in social dilemmas? In Biel, Eak, Garling, &Gustafsson, NewIssues and Paradigms in Research on social Dilemmas. New York:Springer.
Elyasiani, E., & Jia, J. (2010). Distribution of Institutional Ownership and Corporate Firm Performance. Journal of Banking & Finance, 606-620.
Fang, V. W., Noe, T. H., & Tice, S. (2009). Stock Market Liquidity and Firm Value. Journal of Financial Economics, 150-169.
Khanna, N., & Sonti, R. (2004). Value creating stock manipulation: feedback effect of stock prices on firm value. Journal of financial markets, 237-270.
Klaus, G., & Burcin, B. Y. (2003). Average q, Marginal q, and the relation between ownership and performance. Economics Letters.
Maug, E. (1998). Large Shareholders as Monitors: Is there a tradeoff between liquidity and control. Journal of Finance.
Palmiter, A. R. (2002). Mutual fund voting of portfolio shares: Why not disclose. Cardozo Law Review.
Robin, A. (2007). Ownership level, Ownership Concentration and Liquidity. Journal of financial market, 219-248.
Ryan, H. (1996). The Use of Financial Ratios as Measures of Determinants of Risk in The Determination of The Bide-Ask Spread. Journal of Financial and Strategic Decisions.
Silva, F., & Majluf, N. (2008). Does Family Ownership Shape Performance Outcomes? Journal of Business Research.
Startz, R. (2009). EViews illustrated for Version 7. Washington: Quantitative Micro Software, LLC.
Stoll, H. (1989). Inferring The Components of the Bid Ask Spread: Theory and Empirical tests. The Journal of Finance.
Subrahmanyam, A., & Titman, S. (2001). Feedback from stock prices to cash flows. Journal of Finance, 2389-2413.
Wang, Y.-J. (2002). Liquidity Management, Operating Performance, and Corporate Value: Evidence From Japan and Taiwan. Journal of Multinational Financial Management.
In-Text Citation: (Dalvi & Baghi, 2014)
To Cite this Article: Dalvi, M. R., & Baghi, E. (2014). Evaluate the Relationship between Company Performance and Stock Market Liquidity. International Journal of Academic Research in Accounting Finance and Management Sciences. 4(1), 193- 205.
Copyright: © 2014 The Author(s)
Published by Human Resource Management Academic Research Society (www.hrmars.com)
This article is published under the Creative Commons Attribution (CC BY 4.0) license. Anyone may reproduce, distribute, translate and create derivative works of this article (for both commercial and non-commercial purposes), subject to full attribution to the original publication and authors. The full terms of this license may be seen at: http://creativecommons.org/licences/by/4.0/legalcode