aFaculty of Management, University of Tehran, Tehran, Iran
bDepartment of Management, Payame Noor University, Tehran, Iran
cDepartment of Financial Management, Electronic Branch, Islamic Azad University, Tehran, Iran
Online published on 27 March, 2014.
The main objective in this article is to examine the relationship between the quality of accounting information and lack of liquidity risk in Tehran stock market. In so doing, the fiscal information related to 56 stock firms was analyzed whose necessary information in the period in which the research was conducted (2001- 2010) was available. The results of the study indicate that the existence of high- quality accounting information decreases the liquidity of the firms accepted in Tehran stock market. The result agrees with this interpretation that the stock in the firms with higher quality fiscal information is of less ambiguity or lack of certainty and more demanded by customer or from another perspective an increase in the quality of fiscal information brings about a reduction of the lack of information symmetry among the investors and administrators of the business unit. This causes a decrease in the expenses through the wrong selection in transactions between the vendors and vendees of the firms stock. Then that's why the investors are more likely to exchange the stock in these firms and the liquidity risk is lower in these firms.
Information quality, Relevance, Reliability, Liquidity risk
