... empirical research on the impact of risk on banks’ capital buffers. The first hypothesis, referred to as the “liquidity risk” hypothesis, posits that an increase in liquidity creation raises the risk of illiquidity for banks, compelling them to strengthen their solvency. Capital acts as a protective buffer...

...Sedighe Alizadeh; Mohammad Nabi Shahiki Tash; Johannes Kabderian Dreyer Purpose This paper aims to study the impact of liquidity risk and transaction costs on stock pricing in Iran, a closed market operating under a financial embargo and compare the results with those of an important neighboring...