Impact of Retail Investors’ Transactions on the Studied Stock Market Liquidity: Car Industry of Tehran Stock Exchange

The extant study aimed to examine the impact of retail investors' transactions on the stock market liquidity in the car industry listed on the Tehran Stock Exchange. The present research was applied in terms of objective and descriptive-correlational study in terms of method. The statistical population comprised car companies listed on Tehran Stock Exchange. Systematic screening sampling was used to select the sample. This study was carried out within the time interval between 2011 and 2020. According to determinant indicators, 15 companies were chosen as the sample size. In this study, data were analyzed using panel data, multivariate regression, and EViews Software. The results indicated the significant impact of the market value of retail investors' transactions on the stock market liquidity of the car industry on the Tehran Stock Exchange. Moreover, retail investors' transaction volume had a significant impact on the stock market liquidity of the car industry on the Tehran Stock Exchange. The market value percent of retail investors' transactions had a significant effect on the stock market liquidity of the car industry on the Tehran Stock Exchange.