Investigating the effect of Abnormal trades of informed traders on stock liquidity

The present study investigates the effect of abnormal trades of informed traders on stock liquidity. In this study, fluctuations in the volume of abnormal trades of legal Shareholders before the date of the General meeting were used to measure the different behavior of the informed traders. Also, to measure liquidity of stock, two indicators of the trading value and the open trading days were used. In order to achieve the research goal, 123 companies listed in Tehran Stock Exchange during the period 2012 to 2017 were selected. Using the combined data approach, research hypotheses were tested. Findings of the research indicate that there is not a significant relationship between of abnormal trades of informed traders and stock liquidity. This may reflect the heterogeneous behavior of legal stakeholders (as one of the most powerful market players in the capital market) in relation to stock liquidity, resulting in the dissatisfaction of some small shareholders