Assessing the Effect of Stock Liquidity on investment in the companies’ inventories and total assets in Listed Companies on Tehran Stock Exchange

Investment liquidity is of considerable importance for investors when selecting an appropriate portfolio. The present study aims to assess the relationship between stock liquidity and investment in listed companies on Tehran Stock Exchange. It is an ex-post facto and analytical research which applied Panel Data analysis of 112 listed companies on Tehran Stock Exchange over a period, extending from 2006 to 2011. Various software programs were utilized in order to analyze the data such as SPSS20, Eviews7, and Minitab16. The achieved findings of this study indicate that the ratio of stock liquidity, the growth rate of company's inventories and the growth rate of total assets are positively and directly associated with each other.