Liquidity of the stock exchanges plays essential role on investment decisions and it is one of the factors that may influence on stock price. The easier one can buy/sell shares of a firm, the higher liquidity the firm has. In fact, lack of liquidity may lead investors to sell their assets at cheaper prices and it could influence negatively on overall market. The primary objective of this paper is to study the effect of stock liquidity on the risk of falling stock prices. The study chooses historical information of 70 selected firms listed on Tehran Stock Exchange over the period 2006-2012. The results of this survey have indicated that there was a negative and meaningful relationship between stock liquidity and stock price decline.

This paper presents an empirical investigation to study the effect of bank ownership concentration on capital adequacy and liquidity on 14 selected private Iranian banks located in city of Tehran, Iran. The study uses a linear regression model where ownership concentration is independent variable, size, leverage, growth domestic product and revenue growth are control variables and liquidity and capital adequacy are dependent variables. Using historical information over the period 2010-2013, the study has determined a negative and meaningful relationship between liquidity and ownership concentration. However, the study has determined a positive and meaningful relationship between capital adequacy and ownership concentration.

The purpose of the current study is to investigate the various factors influencing on people to invest in mutual funds and examine the mediating role of investor’s perception. By using quantitative research approach and cross-sectional research design, 300 questionnaires are distributed among the individual investors and Smart PLS 3 is used to analyze the data. The results reveal that risk and return, liquidity of assets, demographic factors (gender, age, and material status), convenience, reduction in transection cost, tax benefits and transparency were the key factors and maintained significant relationships with investment in mutual funds. Moreover, investor’s perception maintains mediating role between all these factors and investment in mutual funds. The study contributes in literature by investigating the various factors, which influence on investors to invest in mutual funds. Moreover, it also contributes by investigating the mediating role of investor’s perception.

Cash flow ratios are generally prepared from cash flow statement as per AS-03. It is helpful for financial users including shareholders, management, accountants, auditors and investors to get the relevant information regarding its financial resources for a certain period. Currently cash flow ratios are randomly used instead of traditional ratios due to its wideness and acceptability. In credit rating and forecasting the failure of an organization, cash flow ratios are very much relevant. In this study, we considered different companies from different sectors. From the study, it is clear that the liquidity and solvency position of the companies are moderate whereas the companies maintained low profitability. The efficiency ratios and sufficiency ratios of the companies selected in this study provide us a new look of financial judgement. In our study, we selected three companies from FMCG and Pharmaceuticals sectors. We used the data for a period of 10 years from 2004 to 2013 financial years.

This paper examines the relationship between liquidity and quality of financial information by analyzing long-term trends in illiquidity measure for firms that restate their financial statements. The study uses a method developed by Amihud (2002) [Amihud, Y. (2002). Illiquidity and stock returns: cross-section and time-series effects. Journal of financial markets, 5(1), 31-56.]. The original sample consists of 98 listed firms in Tehran Stock Exchange over the period 2004-2011. In this study, the measurement of quality of financial information is associated with presence or absence of financial restatement cases. We find that for most income decreasing restatements illiquidity increases before restatement announcement and this increase continues after restatement announcement. Overall, our results indicate a positive relationship between quality of financial information and liquidity.

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.

Liquidity management in banks is a conflict between risk and return. On the one hand, the lack of liquidity, in addition to imposing heavy costs of providing resources (including borrowings from the central bank at elevated rates), may also lead banks to face with bankruptcy. On the other hand, the maintenance of excessive liquidity than needed will destroy investment opportunities and potential profitability. Therefore, for proper liquidity management, it is necessary to understand the factors affecting this sector to be able to exert control on each of the elements, and to prevent the incidence of problems or even crisis thereby optimize the bank profitability as far as possible. This study aimed to analyze the resources, expenses, and liquidity operating as the main activity parameters in Bank Shahr. During the study timeframe (2010 until the end of 2012), every 15 days was selected as the sample community, which were selected due to a 15-day trend analysis using census method and not by random sampling. The related data concerning each of the items, i.e. resources, expenses, and liquidity were collected and analyzed by linear regression based on time or periods of time. The above items were compared through analysis of the relative contribution to the total ratio and correlation analysis. The results showed that the growing trends of resources and expenses almost coincide and followed a specific trend and, in general, the growing trend of the resources was rising with a higher slope compared with those of expenses and liquidity. In addition, the growing trend of liquidity was almost identical throughout the entire period of study and no unusual trend was observed.

This study examines the relationship between corporate governance’s mechanisms and liquidity of stocks on 66 selected firms listed on Tehran Stock Exchange over the period 2005-2009. Board composition and ownership structure are used as corporate governance’s mechanisms and illiquidity measure proposed by Amihud (2002) [Amihud, Y. (2002). Illiquidity and stock returns: cross-section and time-series effects. Journal of financial markets, 5(1), 31-56.] is used to measure stock liquidity. The results show that an increase on the number of independent boards is associated with higher liquidity. In addition, the results show that there was a significant relationship between liquidity and ownership structure. In other words, the relationships between liquidity and individual investors and five biggest investors are positive and the relationships between liquidity and institutional ownership and the biggest investor ownership are negative. In addition, there is not a significant relationship between liquidity and duality of managers.

Cash flow ratios help financial users get relevant information about financial resources for a given time. Cash flow ratios are now used more than the traditional ones because it is more effective and justified. Cash flow based ratios are especially surprising because they do not only play a significant role in the credit rating of evaluation, but also forecast the failure of a corporation. In this study, we perform an empirical investigation on a company named CMC. From the study, it is clear that the liquidity and solvency positions of the company were moderate whereas the company maintained low profitability. On the other hand, the efficiency and sufficiency ratios of the study give us a new look on financial judgement.

Measuring liquidity risk plays an important role on any business unit especially financial organizations. Social security systems in most countries around the world are responsible to provide necessary requirements in many countries such as health care, pension plans, etc. Therefore, it is necessary to reduce any risk associated with these systems as much as possible. In this paper, we study liquidity risk in Iranian social security using VaR technique. The proposed model of this paper uses historical information for a fiscal year of 2008-2011. We first divide the information of each year into two groups of first and second half and using VaR technique analyzed whether there was any trend change in these two groups. The results of our survey indicate that the mean of VaR in the second half of the year is greater than the first half of the year. Therefore, we can confirm that VaR maintains an increasing trend over the time horizon. We also study the trend in liquidity using regression analysis for each year, separately and the results of our survey confirm that there was an increasing trend in liquidity over time.