Investigating the Impact of Six Approaches of Financial, Governantial, and Social Responsibility Comprehensive Model (FGSCM) on Stock Liquidity Using Feedback and Agency Theories

The high importance of stock liquidity from the perspective of capital market participants has drawn their attention to the impact of fundamental factors at the company level such as financial status, corporate governance, and disclosure as well as their level of social responsibility on stock liquidity. Therefore, the purpose of this study is to investigate the impact of six approaches of financial, governmental, and social responsibility comprehensive Model on stock liquidity of companies. The statistical population of the present study includes all companies listed on the Tehran Stock Exchange, which finally selected 180 companies during the period 2009 to 2019 after applying restrictions. Also, the research hypotheses have been fitted based on the structural equation modeling method using smart pls software. The results indicate that the six approaches of the holistic model have a significant and positive impact on stock liquidity, and in the final models, EPS index from the accounting approach, EVA index from the economic approach, QTobin index from the Hybrid approach, excess returns from the financial management approach, audit quality index from the corporate governance approach and employee participation index from the social responsibility approach have had the most impact on the liquidity of the stock. The results of this study show that improving the company's position in various aspects, whether financial, governmental or the level of social responsibility has a positive effect on the liquidity of its shares. These results can confirm both agency and feedback theories regarding the impact of firm performance on stock liquidity.