The Effect of New Inside and Outside Information on Liquidity in Iran’s Stock Market

Akbari Roshan, Mahdieh; Mohammadi, Shapour; Ebadi, Jafar

doi:10.22054/joer.2023.72841.1119

Document Type : Research Paper

Authors

¹ Ph.D. in Monetary and Financial Economics, University of Tehran, Iran

² Professor, Department of Economics, University of Tehran, Tehran, Iran

https://doi.org/10.22054/joer.2023.72841.1119

Abstract

The expected value of a company’s stock can change in response to new inside and outside information, depending on the nature of the company. The main purpose of this paper is to test the effect of new and different types of information on the bid-ask spread. Accordingly, using with an event study on a selected sample, we identify release days and specify dummy variables and then we analyze the effect of information on the bid-ask spread with a panel data odel.Other variables include stock return, transaction volume, market return, and the percentage change in the dollar’s price, oil price, and the average price of precious Metals. Results of the empirical model show that while the new inside information has a positive effect on the liquidity, changes in the outside information lead to a wider bid-ask spread and lower stock liquidity. Therefore, outside policy has a negative effect through informational risk and the stability of the outside variable is important for the market’s performance.

Keywords

References

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Economics Research

The Effect of New Inside and Outside Information on Liquidity in Iran’s Stock Market

References

References

Volume 22, Issue 87 - Serial Number 4
January 2022
Pages 39-76

The Effect of New Inside and Outside Information on Liquidity in Iran’s Stock Market

References

References

Volume 22, Issue 87 - Serial Number 4January 2022Pages 39-76

Volume 22, Issue 87 - Serial Number 4
January 2022
Pages 39-76