Investigating the Interactive Effect of Financial Constraints and Development on the Relationship between Stock Liquidity and the Company's Future Investment

The purpose of this research is to investigate the interactive effect of financial development and restrictions on the relationship between stock liquidity and future investment of the company. The method used to test the research hypotheses is to use the combined data regression model to analyze the data of 111 companies admitted to the Tehran Stock Exchange during the period from 2014 to 2018. The findings of the research show that the multidimensional liquidity criterion of Amihud has a positive and significant effect on the future investment of the company. In addition, the interactive variable of financial limitation leads to the intensification of the relationship between the multidimensional liquidity of Amihud and the future investor of the company. Also, the interactive variable of financial development leads to the strengthening of the relationship between the multidimensional liquidity of Amihud and the future investment of the company. The higher liquidity of the shares leads to an increase in the company's future investment level, and in this way, the cash flow, increase and cost of capital related to future investments are reduced. Also, the value of the coefficients and the direction of the criteria related to the measurement of the interactive variable of financial constraints indicate the positive and significant moderating role of this variable on the relationship between the liquidity of shares and the company's future investment. The criterion related to measuring the financial development index also has an interactive role on the relationship between liquidity and future investment,.Enhancing knowledge: Management and policy makers can facilitate the flow of liquidity and reduce the capital cost of companies by knowing the factors affecting the liquidity of stocks and the opportunities for improvement and growth of the company's future investment.