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Study of Relationship between Ownership Structure Liquidity of Stocks of Companies Accepted in Tehran Stock Exchange


Affiliations
1 Department of Management, Arak Branch, Islamic Azad University, Arak, Iran, Islamic Republic of
 

According to the efficient market theory, one of the features of an efficient and ideal market is lack of trade costs and high liquidity. Regarding to the importance of liquidity, recognition of the factors affecting it can help us to improve. The goal of this research is to study the relationship between ownership structure and liquidity of stocks of companies accepted in Tehran stock exchange. Thus, effects of ownership structure were studied in two aspects of ownership type and concentration of ownership on liquidity. A sample of 74 companies, members of Tehran stock exchange, was selected for a 5 year period (2005-2009). Linear regression model with confidence level of 95% and software Excel and SPSS were used to test the assumptions and study of relationship between ownership structure (independent variable) and liquidity (dependent variable). The results show that there a reverse (negative) relationship between institutional ownership level, managerial ownership level, and ownership concentration level with liquidity. Also there is a direct (positive) relationship between corporative ownership level and liquidity.

Keywords

Liquidity, Ownership Structure, Ownership Concentration
User

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  • Study of Relationship between Ownership Structure Liquidity of Stocks of Companies Accepted in Tehran Stock Exchange

Abstract Views: 449  |  PDF Views: 129

Authors

Jafar Nekounam
Department of Management, Arak Branch, Islamic Azad University, Arak, Iran, Islamic Republic of
Majid Zanjirdar
Department of Management, Arak Branch, Islamic Azad University, Arak, Iran, Islamic Republic of
Majid Davoodi Nasr
Department of Management, Arak Branch, Islamic Azad University, Arak, Iran, Islamic Republic of

Abstract


According to the efficient market theory, one of the features of an efficient and ideal market is lack of trade costs and high liquidity. Regarding to the importance of liquidity, recognition of the factors affecting it can help us to improve. The goal of this research is to study the relationship between ownership structure and liquidity of stocks of companies accepted in Tehran stock exchange. Thus, effects of ownership structure were studied in two aspects of ownership type and concentration of ownership on liquidity. A sample of 74 companies, members of Tehran stock exchange, was selected for a 5 year period (2005-2009). Linear regression model with confidence level of 95% and software Excel and SPSS were used to test the assumptions and study of relationship between ownership structure (independent variable) and liquidity (dependent variable). The results show that there a reverse (negative) relationship between institutional ownership level, managerial ownership level, and ownership concentration level with liquidity. Also there is a direct (positive) relationship between corporative ownership level and liquidity.

Keywords


Liquidity, Ownership Structure, Ownership Concentration

References





DOI: https://doi.org/10.17485/ijst%2F2012%2Fv5i6%2F30473