Research Journal of Applied Sciences

Year: 2016
Volume: 11
Issue: 6
Page No. 365 - 368

The Effect of the Financial Constraints on the Liquidity of Stocks of Companies Listed in Tehran Stock Exchange

Authors : Abdolkarim Moghaddam and Himan Mohammadi

Abstract: Financial constraints discussion is one of major and fundamental issues facing all companies. Financial constraints are that hinder the funding for all good investment. Inability to secure funds for investment may be bad credit and the inability to borrow or the inability to issue new stocks or absence of non-cash assets. In this study, the impact of financial constraints on the liquidity of the stock, citing data from 101 companies in the period 2009-2013 were reviewed. Financial constraints as the independent variable and the liquidity of the stock as the dependent variable and two variable company size, growth opportunities as control variables were considered. The results of hypothesis shown there is a significant relationship between the financial constraints and stock liquidity. Also with regard to the control variables there is a significant relationship between Company size and growth opportunities and financial constraints and stock liquidity.

How to cite this article:

Abdolkarim Moghaddam and Himan Mohammadi, 2016. The Effect of the Financial Constraints on the Liquidity of Stocks of Companies Listed in Tehran Stock Exchange. Research Journal of Applied Sciences, 11: 365-368.

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