Ethical Hazards Comparing the Effect of Volume Based on the Liquidity of Securities

One of the most important economic goals of countries is to provide financing from the securities market in order to prevent banking crises. Therefore, the impact of the base volume in the Iranian securities market to prevent speculation and in order to improve liquidity will not be possible except with the increasing link of economic ethics. The purpose of the current research is to investigate the consequences of reducing moral hazard on the application of the base volume and its relative costs on the liquidity of the securities of knowledge-based companies in the Tehran stock market.               

The method of the current research is practical and of the type of machine learning and the method of generalized moments. Two groups of small-medium stocks (a case study of knowledge-based companies) and large companies in the Tehran stock market were selected as the statistical population, which were selected from the ranks of the target population in 2014-2021 as the research sample. The data measurement tool was the Iran Stock Exchange website. The decision tree and torque method was also used for the test.

The fit of the research model, which included a main hypothesis, was confirmed. Therefore, the application of volume based on the market liquidity of two groups has a negative effect, which is more for knowledge-based companies and can cause moral hazards in pricing.

The Amihud index was used for estimation and the experimental results indicate that the volume of the base has a high importance in the lack of liquidity in the market, which is more important for knowledge-based companies and shows that it can cause moral hazards.