Univrsity Of Tehran Press Accounting and Auditing Review 2645-8020 19 4 2013 01 20 The Examination of Effect of Abnormal Discretionary Costs on Stock Liquidity of Companies Listed in Tehran Stock Exchange The Examination of Effect of Abnormal Discretionary Costs on Stock Liquidity of Companies Listed in Tehran Stock Exchange 51 62 73221 10.22059/acctgrev.2020.73221 FA Saeed Fathi Assistant Prof. Administrative and Economics Faculty, University of Isfahan, Iran Seyed Abbas Hashemi Assistant Prof. Administrative and Economics Faculty, University of Isfahan, Iran Z Firuzkuhi Earnings Management, Abnormal Discretionary Costs, Stock Liquidity Alireza Ajam BSc. Business Administration, University of Isfahan Iran Journal Article 2019 10 21 <strong>Abstract:</strong> Stock liquidity is one of the criteria that the investors consider in their portfolio decisions. The earning management is one of the other factors that influence stock liquidity. This could examine in terms of discretionary-related earning management and the real earning management. Therefore the main purpose of this study is to estimate earning management based on the abnormal discretionary costs and also examine its effect on stock liquidity of companies listed in Tehran Stock Exchange. This study conducted through regression model based on panel data and then hypotheses tested through this. The results of data analysis and hypotheses test indicated that the abnormal discretionary costs significantly influence stock liquidity negatively. Also effect of mediator factors on abnormal discretionary costs and stock liquidity has been examined. These factors include standard deviation of daily stock returns, the average daily turnover of stocks, the average closing price of stocks traded, the average number of daily transactions of stocks, and market value of company. Also the results indicated that effects of these factors haven’t been accepted.   <strong>Abstract:</strong> Stock liquidity is one of the criteria that the investors consider in their portfolio decisions. The earning management is one of the other factors that influence stock liquidity. This could examine in terms of discretionary-related earning management and the real earning management. Therefore the main purpose of this study is to estimate earning management based on the abnormal discretionary costs and also examine its effect on stock liquidity of companies listed in Tehran Stock Exchange. This study conducted through regression model based on panel data and then hypotheses tested through this. The results of data analysis and hypotheses test indicated that the abnormal discretionary costs significantly influence stock liquidity negatively. Also effect of mediator factors on abnormal discretionary costs and stock liquidity has been examined. These factors include standard deviation of daily stock returns, the average daily turnover of stocks, the average closing price of stocks traded, the average number of daily transactions of stocks, and market value of company. Also the results indicated that effects of these factors haven’t been accepted.   https://acctgrev.ut.ac.ir/article_73221_63526229b8b498b2b04ce1edebb54f88.pdf