The Survey of the Relationship between Economic Criteria for Evaluating the Performance and Stock Liquidity in Tehran Stock Exchange

Zahra Taheri, Mahmoud Samadi, Mehdi Meshki

Abstract


This  research  attempts  to  study  information  content  of  the  criteria  including  refined
economic value added (REVA) and market value added (MVA) and it investigates their relationship
with criteria of turnover and Amihud illiquidity during 2007-2011 for 532 companies listed in Tehran
Stock Exchange.
The  results  show  that  there  is  a  significant  relationship  between  criteria  of  liquidity  and  firm
performance.  These  results  which  were  estimated  by  the  consolidated  regression  model  (PANEL
DATA) show that there is a positive relationship between REVA stock liquidity and there is also a
stronger positive relationship between market economic value added and stock liquidity. In addition,
market economic value added shows more percentage of changes, however small this difference, than
REVA does.

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