Indian Journal of Finance

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The Association Between Market Liquidity at the Scrip Level and Accounting Variables: The Indian Evidence


Affiliations
1 Lecturer, Department of Commerce, Rabindra Mahavidyalaya, Hooghly, West Bengal, India
2 Professor, Department of Commerce, Burdwan University, West Bengal, India

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This paper investigates empirically the relationship between stock liquidity at the scrip level and some selected accounting variable. Taking Amivest Liquidity Ratio as a measure of stock liquidity present study explores a significant positive relationship between market liquidity and growth of assets, growth of sales and Profit Before Interest and Taxes. But no significant relationship is established between market liquidity and corporate liquidity and only in a few stray cases significant relation between leverage and market liquidity is reported. The results from the Principal Component Analysis confirm a positive relation between the joint effect of growth of assets, growth of sales and Profit Before Interest and Taxes with the market liquidity at the scrip level.
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  • The Association Between Market Liquidity at the Scrip Level and Accounting Variables: The Indian Evidence

Abstract Views: 161  |  PDF Views: 0

Authors

Som Sankar Sen
Lecturer, Department of Commerce, Rabindra Mahavidyalaya, Hooghly, West Bengal, India
Santanu Kr. Ghosh
Professor, Department of Commerce, Burdwan University, West Bengal, India

Abstract


This paper investigates empirically the relationship between stock liquidity at the scrip level and some selected accounting variable. Taking Amivest Liquidity Ratio as a measure of stock liquidity present study explores a significant positive relationship between market liquidity and growth of assets, growth of sales and Profit Before Interest and Taxes. But no significant relationship is established between market liquidity and corporate liquidity and only in a few stray cases significant relation between leverage and market liquidity is reported. The results from the Principal Component Analysis confirm a positive relation between the joint effect of growth of assets, growth of sales and Profit Before Interest and Taxes with the market liquidity at the scrip level.