Document Type : Original Article

Authors

1 Planning and Economic Development Department, Allameh Tabatabai University, Tehran, Iran

2 Department of Business Economics, Allameh Tabatabai University, Tehran, Iran

3 Business Economics Department, Allameh Tabatabai University, Tehran, Iran

4 Phd Candidate, Economics, Economic Faculty, Allameh Tabatabie University, Tehran, Iran.

Abstract

Digital technology, the main driver of the fourth industrial revolution, has profoundly transformed the world's economic landscape. Digital technologies make available these services to people who do not have access to them. This paper aims to identify the financial issues created in the digital economy and based on cases taken from digital and knowledge-based companies, it raises the importance of the role of base volume in stock liquidity. It evaluates the role of the base volume in the liquidity of digital and knowledge-based companies' stocks in the Tehran Stock Exchange. The population is newcomers to digital and knowledge-based companies.

To provide the possibility of scientific evaluation of the empirical implications of applying the base volume in daily market practice, for the first time a quantitative estimate of the base volume implied by the economic model has been made retrospectively available within the rules designed by the market regulator via a MATLAB software programming.

Using the GMM method, the effects of the estimated base volume, percentage of free-floating share, securities turnover, and the ratio of transaction volume to base volume on Amihud index were studied during 2014-2019. The findings indicate that the application of base volume on the liquidity of digital and knowledge-based companies has had a negative effect on the calculation of the final price and on the liquidity of knowledge-based companies. Also, the results of using the machine learning method (decision tree) show the importance coefficient of 32.6% for the base volume in the Amihud index of knowledge-based companies.

Keywords