Survey the Stock Liquidity at the Time of Issuing Financial Reports

Abstract

The objective of this research is the effect of issuing financial reports on stock liquidity at Tehran Stock Exchange. For this purpose, stock market liquidity at seven transactional days before event (issuing financial reports) compared to seven transactional days after event. For doing this research, we used data for 57 listed companies in Tehran Stock Exchange for period of 2002-2007. In this research, stock liquidity has been measured using three proxies. Hypotheses of research examined by cross sectional and pooled method. Results show that there is a significant difference between mean proportional spread of stock of price before and after issuing financial reports. Also, there is a significant difference between mean stock price depth before and after issuing financial reports. However, there is no significant difference between turnover rate of stock before and after issuing financial reports.

Keywords

• ask price
• bid price
• stock price spread
• stock price depth
• and turnover rate of stock