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Growing Science » Management Science Letters » Investigating the effects of liquidity and exchange rate on Tehran Stock Exchange

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Management Science Letters
ISSN 1923-9343 (Online) - ISSN 1923-9335 (Print)
Quarterly Publication
Volume 4 Issue 8 pp. 1865-1870, 2014

Investigating the effects of liquidity and exchange rate on Tehran Stock Exchange Pages 1865-1870 Right click to download the paper Download PDF

Authors: Younos Vakil Alroaia, Khosro Faghani Makrani, Amir Banagozar

📋 Author Affiliations:
Crossref Source: CrossRef

🔑 Keywords: Exchange rate, Liquidity, Tehran Stock Exchange

Abstract: This paper presents an empirical investigation to study the effects of two macroeconomic factors; namely exchange rate and liquidity on stock index. The proposed study was applied in Iran and on major index of Tehran Stock Exchange over the period 2001-2011. They reported that the currency exchange maintained negative impact on stock exchange for the period of investigation. This is due to the fact that when currency devalued, working capital decreases and firms did not enough money to purchase raw materials, pay wages, etc. In addition, liquidity marinated a direct and positive relationship with exchange index. However, the impact of liquidity seems to be bigger than currency exchange.

How to cite this paper
APA: Alroaia, Y., Makrani, K & Banagozar, A. (2014). Investigating the effects of liquidity and exchange rate on Tehran Stock Exchange. Management Science Letters, 4(8), 1865-1870.
Chicago/Turabian: Alroaia, Y., Makrani, K & Banagozar, A. 2014. "Investigating the effects of liquidity and exchange rate on Tehran Stock Exchange." Management Science Letters 4, no. 8 (2014): 1865-1870.
AMA: Alroaia, Y., Makrani, K & Banagozar, A. Investigating the effects of liquidity and exchange rate on Tehran Stock Exchange. Management Science Letters. 2014;4(8):1865-1870.

References
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Mahmood, W., Mansor, W., & Mohd Dinniah, N. (2007). Stock returns and macroeconomic influences: Evidence from the six Asian-Pacific countries. Financial Economics and Futures Market Research Paper.

Nydahl, S. (1999). Exchange rate exposure, foreign involvement and currency hedging of firms: some Swedish evidence. European Financial Management,5(2), 241-257.

Pan, M. S., Fok, R. C. W., & Liu, Y. A. (2007). Dynamic linkages between exchange rates and stock prices: Evidence from East Asian markets. International Review of Economics & Finance, 16(4), 503-520.

Pastor, L., & Stambaugh, R. F. (2001). Liquidity risk and expected stock returns (No. w8462). National Bureau of Economic Research, 642-685.

Salehi, M., & Biglar, K. (2009). Study of the relationship between capital structure measures and performance: evidence from Iran. International Journal of Business and Management, 4(1), 97.

Salehi, M., Talebnia, G., & Ghorbani, B. (2011). A study of the relationship between liquidity and stock returns of companies listed in Tehran Stock Exchange. World Applied Sciences Journal, 12(9), 1403-1408.

Zhao, H. (2010). Dynamic relationship between exchange rate and stock price: Evidence from China. Research in International Business and Finance, 24(2), 103-112.
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📚 Journal: Management Science Letters | 📅 Year: 2014 | 📖 Volume: 4 | 📄 Issue: 8 | 👁️ Views: 2614 | 📊 Crossref:

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