The Relationship between Financial Constraints and Stock Liquidity with Stock Returns

Kamal Gharagozloo¹

1) M.A of Accounting, Has.C., Islamic Azad University, Hashtgerd, Iran (Corresponding Author).

IOI Code : AAHC-ABFGGZ
Publication : National Conference on Management, Commercialization, Knowledge-Based Economy and Investment for Production(impeb.ir)
Abstract :
    The aim of this study is to analyze the relationship between financial constraints and stock liquidity with stock returns. In this regard, data from 115 companies listed on the Tehran Stock Exchange were extracted for a ten-year period from the beginning of 2016 to the end of 2025. Subsequently, the research variables were calculated and the necessary statistical tests were performed. The method of this study is descriptive-correlational, and multiple linear regression was used to test the research hypotheses, utilizing SPSS and Eviews software. The findings indicated that, according to the first hypothesis, there is a significant negative relationship between financial constraints and stock returns; and according to the second hypothesis, there is a significant negative relationship between stock liquidity and stock returns.

Keywords : financial constraints stock liquidity stock returns