The effect of the performance of investment funds on the liquidity of the Saudi stock market (during the period 1996-2020)

Abstract

Investment funds have become an important investment option in the stock market, due to
their consideration of investment considerations such as security, diversification, and liquidity. In
this regard, this study aims to determine the role of investment funds in influencing the liquidity of
the stock market in the Kingdom of Saudi Arabia, during the period from 1996 to 2020, according
to the multiple regression model in the least-squares method.
- The study reached the following results:
The performance indicators of investment funds explain 59% of the changes in the stock turnover
rate.
- There is a direct relationship between the number of investors and the stock turnover rate, and an
inverse relationship between the total assets index and the stock turnover rate in the Saudi stock
market.
- The weak impact of investment funds' performance on the liquidity of the Saudi stock market
during the study period