The relationship between stock liquidity and returns of companies with financial constraints and lack of financial constraints

Liquidity is a key determinant of the quality of the capital market and is considered a prerequisite for the development of the market. In this study examines the relationship between stock liquidity and returns of companies were with financial constraints and lack of financial restrictions . For this purpose, two main hypotheses were designed to verify that the second hypotheses of both indices KZ and classified based on the book value of the assets were used to classify the firms based on financial constraints. In this study Were selected all the companies that required data for five-year period under the years 1389 to 1393 investigation about them was available, Including 130 company . In this study was performed through statistical hypothesis testing, simple and multiple regression techniques (stepwise) and to test the significance of the models statistics F and t. The results showed there was a significant relationship between liquidity and return. The index is based on financial constraints indices KZ on the relationship between liquidity, information asymmetry and does not affect stock returns. But financial constraints on the book value of assets on the relationship between liquidity and return was influential

Keywords:

liquidity , return , financial restrictions