Accounting and Auditing Research

Accounting and Auditing Research

The Role of Trading Volumes and Liquidity on Investment Opportunities and Capital Expenditures in Companies Listed in the Tehran Stock Exchange

Document Type : Original Article

Authors
Khatereh Safari 1
Mehdi Beshkoh 2
1 master student,. Qazvin Branch, Islamic Azad University, Qazvin, Iran
2 Assistant Professor, Department of Accounting, Qazvin Branch, Islamic Azad University, Qazvin, Iran
10.22034/iaar.2019.102300
Abstract
One way to secure capital for investment is through the issuance of bonds and stocks through the stock market.  The securities market plays a vital role in attracting low capital and financing companies.  Since these markets have a constructive role in the allocation of resources and the national capital, so their utility will be in the economic development of society.  The most crucial factor that plays an important role in investing is the investment opportunities and capital expenditures of the companies.  Therefore, this study investigates the role of trading volume and liquidity on investment opportunities and capital expenditures in listed companies in Tehran Stock Exchange using panel data method during 1390-1394.  The results of the data analysis showed that there is a direct and significant relationship between liquidity on investment opportunities, a direct and significant relationship between the volume of transactions on investment opportunities, and also a relationship between liquidity and investment opportunities on capital expenditure. Therefore, users of financial statements, including investors, are advised to analyze the investment opportunities of the company and select the companies before making any decision on which company to invest.
Keywords
Investment Opportunities
Liquidity
Stock Exchange
Accounting and Auditing Research
Volume 11, Issue 44
Winter 2020
Pages 195-210