The impact of economic policy uncertainty on stock liquidity with a focus on the role of financial disclosure

Iranian Journal of Accounting, Auditing and Finance

مقالات آماده انتشار، پذیرفته شده، انتشار آنلاین از تاریخ 12 اردیبهشت 1404

نوع مقاله: Original Article

شناسه دیجیتال (DOI): 10.22067/ijaaf.2025.92157.1531

نویسندگان

reza abbas zadeh amiri¹؛ Hamid Reza Bazzaz zadeh Torbati^{* 2}؛ Mohammad Reza Abbaszadeh³؛ Alireza Mehrazin⁴؛ Mohammad Karimi⁵

¹Department of accounting ,Neyshabur Branch ,Islamic azad university Neyshabur , Iran

²Department of Accounting,neyshabur branch, Islamic Azad University ,neyshabur, Iran

³Department of Economics and Administrative Sciences, Ferdowsi University Of mashhad, mashhad, Iran

⁴Department of Accounting,neyshabur branch, Islamic Azad University , neyshabur, Iran

⁵Department of Management ,neyshabur branch, Islamic Azad University , neyshabur, Iran

چکیده

Purpose: The world economy is suffering from persistent economic policy uncertainties emanating from natural disasters, politics and etcetera. Changes in policies or government actions that alter the economic environment, affect price reactions in financial markets. This study aimed to examine the relationship between economic policy uncertainty and stock liquidity and the role of information disclosure in this relationship.

Design/methodology/approach: Accordingly, regular and accurate data are required, which led to the selection of all companies listed on the Tehran Stock Exchange as the statistical population for this research. Data from 64 companies listed on the Tehran Stock Exchange from 2007 to 2021, selected as the accessible statistical population, were collected to test the research hypotheses.

Findings: The results of hypothesis testing showed that economic policy uncertainty negatively affects stock liquidity. Economic policy uncertainty does not have a positive impact on information disclosure. Finally, information disclosure reduces the effect of economic policy uncertainty on stock liquidity, and the moderating role of information disclosure was confirmed.

Originality/value: It can be concluded that managers produce more information in response to information asymmetry shocks caused by economic policy uncertainty to bridge the informational gap between insiders and market participants. When information asymmetry in the market increases due to economic policy uncertainty between the company (informed traders) and potential investors (uninformed traders), managers have more significant incentives for voluntary disclosure to reduce informational friction.

کلیدواژه‌ها

Economic Policy Uncertainty؛ Information Disclosure؛ Stock Liquidity؛ Information Asymmetry