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The Relationship between Stock Liquidity with Order Based Criteria and the Risk of Stock Price Crash in the Firms
Academic Journal of Accounting and Economic Researches
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| Title |
The Relationship between Stock Liquidity with Order Based Criteria and the Risk of Stock Price Crash in the Firms
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| Creator |
Aghari , Zekvan Imani, Ali Homayoon, Elnaz
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| Description |
Regard to the role of stock liquidity in the more distribution of financial risk through reducing transaction and portfolio costs, creating more motivation in investors for trading decisions, as well as its important role in stock price discovery process, bridging the gap between bid and offer prices and therefore reducing the risk of stock prices crash, and due to main concerns of investors in the market about the phenomenon of stock prices crash and considering the fact that stock prices crash leads to a sudden and negative revision in investors’ expectations about the stock of a firm, in this study we investigate the relationship between stock liquidity with order-based criteria and risk of stock prices crash in firms listed in Tehran Stock Exchange. Order-based criteria include the absolute gap between supply and demand, the relative gap between supply and demand. For this purpose, a sample, consisting of 90 firms listed in Tehran Stock Exchange from 2010 to 2014, is selected. Multivariate logistic regression method is used to test the hypotheses. The results indicate that there is a significant negative correlation between the volume of transactions, value of transactions, stock turnover, float stock cycle, the relative gap between supply and demand, and the risk of stock prices crash.
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| Publisher |
Academic Journal of Accounting and Economic Researches ISSN 2333-0783
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| Contributor |
—
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| Date |
2016-08-12
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| Type |
info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion Peer-reviewed Article |
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| Format |
application/pdf
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| Identifier |
http://worldofresearches.com/ojs-2.4.4-1/index.php/ajaer/article/view/308
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| Source |
Academic Journal of Accounting and Economic Researches ISSN 2333-0783; Vol 5, No 3 (2016): July 2016
2333-0783 2375-7493 |
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| Language |
eng
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| Relation |
http://worldofresearches.com/ojs-2.4.4-1/index.php/ajaer/article/view/308/244
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| Rights |
Copyright (c) 2016 Academic Journal of Accounting and Economic Researches ISSN 2333-0783
http://creativecommons.org/licenses/by-nc/4.0 |
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