Investigation and Explanation of the Relationship between Ownership Structure and Stocks Liquidity of Companies Accepted in Tehran Stock Exchange

摘要

Background: According to the efficient market theory, one of the features of anefficient and ideal market is the lack of trading costs and high liquidity. Regarding tothe importance of liquidity, recognition of the factors affecting it can help us improveit.Objective: goal of this research is to study the relationship between ownershipstructure and stocks liquidity of the companies accepted in Tehran stock exchange, thusthe effect of ownership structure on stocks liquidity is investigated both from ownershiptype and ownership concentration views. Results and conclusion: A sample comprisedof 74 companies which were members of Tehran stocks exchange in a 5 year period(2005-2009) is selected. Linear regression model with confidence level of 95% andsoftware Excel and SPSS were used to test the assumption and study of relationshipbetween Ownership Structure (independent variable) and liquidity of the stocks(dependent variable). The results show that institutional ownership level, managerialownership level and ownership concentration level have a reverse (negative)relationship with stocks liquidity and also there is a direct (positive) relationshipbetween corporative ownership level and stocks liquidity.