Analyzing the relationship between stock liquidity and corporate bankruptcy risk with emphasis on the role of institutional owners

Bankruptcy analysis is an important issue for investors, creditors and other users of financial information. Determining the factors that affect the likelihood of a company becoming helpless before bankruptcy is a very interesting and attractive topic and can be useful for both managers and investors and creditors. Bankruptcy of companies has always been one of the main concerns of creditors, investors and governments, so that timely identification of companies that are on the verge of financial bankruptcy can to some extent prevent potential losses to stakeholders. This study seeks to analyze the relationship between stock liquidity and bankruptcy risk of the company with emphasis on the role of institutional owners of companies listed on the Tehran Stock Exchange. For this purpose, the research hypotheses were tested from the financial information of 122 companies using logistic regression method. The results indicate that there is no significant relationship between stock liquidity and corporate bankruptcy risk and other results showed that the regulatory power of institutional owners is not able to affect this relationship.