The relationship between stock liquidity risk and financial information quality criteria in Tehran Stock Exchange

The current study aims to investigate the relationship between stock liquidity risk and financial information quality criteria (i.e. the timely dividends announcement, accruals quality and the percentage of profitability prediction error) of companies listed on the Tehran Stock Exchange. For this purpose, ۱۴۸ cases of data from listed companies, collected from ۲۰۰۷ to ۲۰۱۲, were employed in order to test the hypotheses during ۲۰۰۷-۲۰۱۲. The results of the study reveal that there is a significant relationship between liquidity risk (the dependent variable) with quality of accruals, percentage of profitability prediction error and timely dividends announcement (independent variables). High levels of accruals quality and timely dividends announcement, cause reduction in stock's liquidity risk, and high percentages of profitability prediction error increase the stocks' liquidity risk.

Keywords:

Accruals quality , Liquidity risk , percentage of profitability prediction , quality of information , timely dividends announcement