Evaluation of the association between company performance and Iran’s stock market liquidity

Document Type : Research Paper



2 Department of Accounting, Shahr-e- Qods Branch, Islamic Azad University, Tehran, Iran


This research studies the companies’ effectiveness and performance relationship with stock market liquidity in Tehran Stock Exchange during 2010-2015. Simultaneously, in the study, the three indicators: return on assets, return on investment and Tobin's Q ratio were applied as a measure of the performance and bid-ask spread as a measure of liquidity, bid-ask spread to the stock market. This research has a practical purpose and descriptive correlation in research nature and also post-event research. The under study population comprises all companies accepted in Tehran Stock Exchange during the intended period, 198 companies selected with systematic elimination sampling to be studied and analyzed. The results show a positive and significant association between companies’ performance and Stock market liquidity.


Main Subjects

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Volume 3, Issue 2
June 2018
Pages 59-68
  • Receive Date: 02 June 2017
  • Revise Date: 18 April 2018
  • Accept Date: 20 June 2018
  • First Publish Date: 20 June 2018