Studying the Relationship among the Type of Agency Costs and Corporate Governance with Liquidity of the Stock Exchange Companies

Abstract

The main purpose of the present study is to investigate the relationship among the type of agency costs and corporate governance with liquidity in recognized companies in the Tehran Stock Exchange in 2014. The statistical population studied in this research includes enterprises recognized in the Tehran Stock Exchange and the systematic elimination method has been used to select the sample which 166 enterprises have been selected.

The information of research has been obtained through the collection of data from different companies by referring to financial reports and statements, explanatory notes, weekly and monthly reports of the stock exchange, websites, databases, journals and reports of bourse and finally the questionnaire is used to receive the views of managers and employees.

To describe as well as analyze and examine the data, the descriptive and inferential statistics methods respectively have been used which the SPSS software has been assisted for this purpose. The results obtained from this study showed that agency costs and corporate governance have the inverse and relationship with liquidity, respectively.

Finally, considering the support of hypotheses and results obtained in research, proposals have been prepared and presented.

Keywords: Agency costs, the corporate governance, liquidity.