Vol. 5 No. 2 (2021)
Articles

Explaining the degree of liquidity of the stock market according to the role of investors' emotional tendencies (evidence from the member countries of the Organization of the Islamic Conference)

Published 2021-11-10

Abstract

The purpose of this research is to explain the degree of liquidity of the stock market according to the role of investors' emotional tendencies based on evidence from the member countries of the Organization of the Islamic Conference. Of these, four countries, Iraq, Malaysia, Turkey and Iran, have been selected as sample.  Research data are collected from a ten-year period from 2010 to 2019. For this purpose, the data panel approach has been used to test the research hypotheses. The research findings indicate that with the increase of investors' emotional inclination, the amount of stock market liquidity has also increased and the emotional tendency of investors has a positive and significant relationship with the degree of liquidity of the stock market. Regarding the relationship between the growth rate of money supply and the amount of liquidity, it can be said that increasing the growth rate of money supply is associated with increasing the degree of liquidity. The variables of industrial production growth rate and inflation rate have no significant relationship with the degree of liquidity.