Since some investors may need their investing financial sources immediately, in every financial market, the level of assets liquidity is considered as a basic issue in investment. By considering the effect of liquidity in discovering the assets` prices, distributing the financial risk, decreasing the costs of transactions, and determining the factors which affect it, is very important. This research reviews the effect of outside members of board of directors and institutional ownership, as the most important criteria of corporate governance, on liquidity of stocks. To do so, a number of 69 companies were chosen from Tehran stock exchange through screening method, in 2008-2011 time periods. In this research 7 different standards were defined for liquidity. We reached to evidences that show the number of outside members of board of directors has no effect on liquidity and institutional ownership is not that effective on liquidity. The results indicate that, since among 7 standards of liquidity, 4 standards have a negative and significant relationship with institutional ownership, we can say that: there is a negative and significant relationship between institutional ownership and liquidity of stocks.
Copyright: © 2018 The Author(s)
Published by Human Resource Management Academic Research Society (www.hrmars.com)
This article is published under the Creative Commons Attribution (CC BY 4.0) license. Anyone may reproduce, distribute, translate and create derivative works of this article (for both commercial and non-commercial purposes), subject to full attribution to the original publication and authors. The full terms of this license may be seen at: http://creativecommons.org/licences/by/4.0/legalcode
