The Impact of Information Asymmetry, Concentration of Ownership and Dividends on Floating Stock Turnover

The main objective of this research is to investigate the effect of information asymmetry, concentration of ownership and dividends on floating stock turnover in the Tehran Stock Exchange. In other words, this paper attempts to answer the question of whether the floating stock turnover is influenced by the increase and decrease of these three variables. To answer this question, a sample of each of the 143 listed companies in the Tehran Stock Exchange was reviewed during the period from 2011 to 2017. In the present study, the Venkatesh and Chiang model designed to measure the price range of stock buying and selling has been used to measure the information asymmetry among investors. For floating stock turnover, the model used by Rahmani et al. (2010) has also been employed. According to Claessens & Associates in 2002, the largest shareholder is accepted as the focus of ownership. Research hypotheses were investigated through multiple regression models. Research findings show that with the increase of information asymmetry and dividends, the turnover of floating shares also increases, but the concentration of ownership does not affect this dependent variable.