The current study is unique due to the consideration of firm size that is moderator variable
between Institutional Investors and stock market liquidity in Fuel and Energy sector of Pakistan
Stock Exchange because majority of the previous studies have been used SZ as a control variable. The
secondary panel data of the sample firms for a period of 10 years (2009-2018) have been analyzed through
Gretel software while multiple regression and moderation has been applied. The study concludes that SZ, as
moderator, has significant role between I.I and ML along with other explanatory variables like Tobin Q ratio
(Tob,Q). Therefore, big size I.I has considerable influence over ML as compared to Small or average size I.I.
The study recommends that ML can be increased by reducing the undue influence of the large I.I through
establishing proper legislation which will safeguard various parties such as small I.I, medium I.I and individual
investors in capital markets.
1-Muhammad Arif Assistant Professor, Department of Management Sciences, University of Swabi, Anbar, KP, Pakistan.