empirical relation between risk, return and liquidity with free float in tse listed companies

based on current expectations, when the free float is more, more deals done and consequently the share price volatility will also increase. shareholders expect more profits from stocks which have more free floats. this paper examines the kind of relationship between free float and liquidity, risks and returns and the degree of influence of these variables in the percentage of free float. we consider seasonal intervals from 1383 to 1387 to examine the relationships among the data of 111 companies. based on the results of conventional regression and generalized regression, there is no significant relationship between the percentage of free float and return and also between free and risk. however, the percentage of free float and liquidity rating was affirmed with significant relation. based on the results of the generalized inverse regression, the relationship between free float and risk was significant and other results remained unchanged.