The Relationship between Disclosure Quality and Stock Liquidity in listed Companies on Tehran Stock Exchange

Subject Areas : Financial Knowledge of Securities Analysis

احمد  یعقوب نژاد ¹ (مسئول مکاتبات)
علی  ذبیحی ² (ندارد)

Received: 2011-05-23 Accepted : 2011-07-16 Published : 2011-06-22

Keywords: Disclosure Quality, information asymmetry, Bid- Ask spread,

Abstract :

This study examines relationship between disclosure quality and stock liquidity in Tehran stock exchange. We use a sample of 72 listed companies over a five-year (1383-1387). Results in other countries show that improving disclosure quality decreases information asymmetry. So stock liquidity increases  to decline information asymmetry. The focal  point of our study is improving disclosure quality resulting in  more stock liquidity .The multivariate pooled regression model is used to examine the hypotheses. However, we do not find any significant association between disclosure quality and stock liquidity.