The impact of Stock liquidity on Tobin’s Q: evidence of Tehran Stock Exchange

Mehrzad Minooei¹ Leila Farjoud² Ali Abizade³ Atefeh koohi⁴

1) PhD in finance and accounting. Islamic Azad University, Science and Research Branch, Tehran, Iran
2) PhD DBA, Spring institutions of higher learning - the University of Applied Sciences, Tehran, Iran
3) Student Master of Business Administration, Islamic Azad University Central Tehran, Iran
4) Student Master of Business Administration, Islamic Azad University Central Tehran, Iran

IOI Code : XYCG-AEZDK
Publication : international conference of Management Elites(icme.ir)
Abstract :
    Measure the value of participating in the decision making process in relation to investment or disinvestment in the capital market is one of the most important issues of financial sector . The main objective of corporate managers is to maximize equity . Tobin s Q ratio is one of the criteria for the assessment of performance, because the ratio of accounting data and market information in order to assess the value of companies uses . Find new ways to improve the value of the company is a competitive advantage . In this regard, the empirical evidence suggests that Tobin s Q ratio is improved stock liquidity . Liquidity means the possibility of a quick sale is a stock sheet . In this study, Myvst liquidity ratio is used to measure the stock liquidity . This study investigates the issue is whether the liquidity of the stock on Tobin s Q ratio of listed companies in Tehran Stock Exchange will have an effect or not? Methods based on objective, functional and based on the nature, type a descriptive causal and after the event . The population of the study, all companies listed on the Tehran Stock Exchange in the period from 1389 up to the end of 1393 . To test the hypothesis, the multivariate regression analysis (estimation method EGLS) and panel data using software is used Eviews 9 . The results indicate that stock liquidity significantly positive effect on firms listed in the Tehran Stock Exchange . Positive impact on Tobin s Q ratio may be due to increased stock liquidity charm liquid stocks, increased demand for these types of stocks, incentives management and the stock price did not come with valuable information .

Keywords : stock liquidity tobin s q ratio tehran stock exchange firm value