Investigating the effect of factors affecting stock liquidity using panel data regression model with fixed effects approach with emphasis on the moderating role of the board of directors structure.

Document Type : Original Article

Authors

• Fatemeh Marani ¹
• Allahkaram Salehi ²
• Alireza Jorjorzadeh ³
• Ahmad Kaab Omeir ³

¹ Susangerd Branch Islamic Azad University

² Department of Accounting, Masjed Soleiman Branch, Islamic Azad University, Masjid Sulaiman, Iran.

³ Department of Accounting, Ahvaz Branch, Islamic Azad University, Ahvaz, Iran.

Abstract

The purpose of this research is to investigate the effect of factors affecting the liquidity of stocks using the regression model of panel data with the fixed effects approach with emphasis on the moderating role of the board of directors. For this purpose, four hypotheses have been compiled and data related to 112 member companies of Tehran Stock Exchange for the period between 1396 and 1401 have been analyzed. The regression model of the research has been examined and tested using the panel data method with the fixed effects approach. The obtained results show that the power and knowledge of the CEO has a positive and significant relationship with the liquidity of the shares. Also, political connections have a positive and significant effect on stock liquidity, and the relationship between the CEO's power and knowledge of stock liquidity has a positive and significant relationship with the structure of the board of directors, and political connections with stock liquidity also has a positive and significant relationship with the structure of the board of directors.

Keywords

• CEO power and knowledge
• political connections
• stock liquidity
• board structure

Main Subjects

• Economic and financial markets

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