Management
Humayun Humta; Hamayoun Ghafourzay
Volume 11, Issue 2 , February 2024, , Pages 183-193
Abstract
Internal and external finance are the two primary forms of funding for businesses. Internal financing is derived from retained profits, while external financing may come through borrowing money or the issuance of stocks. Businesses utilize it constantly to grow and stay alive, so the choices they make ...
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Internal and external finance are the two primary forms of funding for businesses. Internal financing is derived from retained profits, while external financing may come through borrowing money or the issuance of stocks. Businesses utilize it constantly to grow and stay alive, so the choices they make about finance are crucial. Market timing is vital for determining the appropriate financial structure for a company's success because volatility in market valuation greatly affects the capital structure. Capital structure requires a decision-making tactic that is an art to tackle complex situations. Modigliani and Miller started this ground-breaking study on capital structure in the field of corporate finance in 1958. After that, several theories were developed, but one of those theories was the market timing theory of capital structure, which explains that firms issue new stock when their share price is overvalued and repurchase shares when their share price is undervalued. These price fluctuations of equity will affect corporate financing decisions and ultimately corporate capital structures. The goal of this study is to test the applicability of market timing theory in the context of Canadian firms; thus, the data have been collected from the FINVIZ Stock Screener for the period (2022) and analyzed by a generalized linear model technique through the EViews 13. The research concludes that the market-to-book ratio has a statistically significant negative effect on market leverage as well as book leverage.
Accounting
Ali Najafi Moghadam; Masoumeh Nejad Mohammadi Alarelough; Abdulaziz Salem Nejad
Abstract
The aim of this study was to investigate the effect of internal factors of the company on the Tobin's Q ration and the value of companies admitted in Tehran Securities Exchange Stock Exchange with the approach of structural equation modeling. In this study the effect of corporate governance, capital ...
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The aim of this study was to investigate the effect of internal factors of the company on the Tobin's Q ration and the value of companies admitted in Tehran Securities Exchange Stock Exchange with the approach of structural equation modeling. In this study the effect of corporate governance, capital structure and profit sharing policy as internal variables on corporate value was investigated. This research is practical in terms of goal. Statistical population of the present study is the companies accepted in the Tehran Stock Exchange between 2012 to 2016. Among them, 161 companies were selected as sample through systematic elimination. After finding to fit the acceptable model of measurement and structure of the research, the results showed that internal variables have a positive effect on the Tobin's Q ratio. Among the internal variables, the return-sharing policy has the most impact on the Tobin's Q ratio. The Tobin's Q ratio can mediate the relationship between local variables and the corporate value.
Mina Jami; Amir Shams Koloukhi
Volume 5, Issue 11 , November 2018, , Pages 849-860
Abstract
This study examines the determinants of capital structure and performance in the listed companies of Tehran Stock Exchange. Information of the financial statements of the sample companies were extracted using Rahavardnovin Software. Statistical population included listed companies in Tehran Stock Exchange ...
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This study examines the determinants of capital structure and performance in the listed companies of Tehran Stock Exchange. Information of the financial statements of the sample companies were extracted using Rahavardnovin Software. Statistical population included listed companies in Tehran Stock Exchange since 2012-2017 from which 123 companies were selected as the sample. The model of the study was estimated using least squares method. Based on the results, the effect of company size, financial leverage, and advertisement cost on the performance was found to be significant. Also, the effect of company size, company age, sale volume, and total earnings on the capital structure was significant. In conclusion, some suggestions were offered.
Soosan Salehi; Mohammad Reza Abdoli; Mehdi Eskandari
Volume 4, Issue 8 , August 2017, , Pages 857-879
Abstract
Overconfidence is one of the critical concepts of modern behavioral finance highly interested in financial theories and psychology. The main objective of the present research is to study the relationship between managers’ overconfidence and financing decisions (capital structure) concentrated on ...
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Overconfidence is one of the critical concepts of modern behavioral finance highly interested in financial theories and psychology. The main objective of the present research is to study the relationship between managers’ overconfidence and financing decisions (capital structure) concentrated on ownership structure in Tehran Stock Exchange. Research time span is from 2011 to 2015 (a 5-year period). Results of testing research hypotheses of 146 firms revealed that overconfidence and ownership type have no significant effect on financial decisions. In addition, ownership type and institutional owner ration showed no significant effect on the relationship between overconfidence and financial decisions. Whereas, according to the obtained results, institutional owner ratio significantly influences financial decisions.
Farrukh Shahzad; Muhammad Rizwan Nazir; Waqas Amin
Volume 4, Issue 6 , June 2017, , Pages 629-639
Abstract
Taking the 2011-2015 public listed financial and non-financial firms in Pakistan as the sample of the study, this paper scrutinizes the sway of ownership structure on capital structure. The multivariate regression analysis technique is used because the dependent variable is influenced by the more than ...
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Taking the 2011-2015 public listed financial and non-financial firms in Pakistan as the sample of the study, this paper scrutinizes the sway of ownership structure on capital structure. The multivariate regression analysis technique is used because the dependent variable is influenced by the more than one independent variable. The final results reveal that capital structure decision is positively associated with the board of director size and non-executive director’s percentage while it is negatively related with the percentage managerial shareholding.
Abdul Basit; Zubair Hassan
Volume 4, Issue 2 , February 2017, , Pages 118-135
Abstract
The purpose of this study is to investigate Debt to Equity ratio to determine firm performance of Pakistani companies listed in Chemical, Food and Care products, Cement, Pharmaceutical, Auto assembler and Textile sector. The research done on 50 companies listed under Karachi Stock exchange covered the ...
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The purpose of this study is to investigate Debt to Equity ratio to determine firm performance of Pakistani companies listed in Chemical, Food and Care products, Cement, Pharmaceutical, Auto assembler and Textile sector. The research done on 50 companies listed under Karachi Stock exchange covered the period of 2010-2014, total observations of 250 firms-years. The independent variable is Debt to Equity and dependent variables are Size, Earnings per Share, Return on Assets, Return on Equity and Marketing. The research employed Descriptive Statistics, Pearson correlation coefficient and multiple linear regressions and the findings shows Earnings per share, Return on Equity and Return on Assets are significantly correlated to Debt to Equity ratio. While Debt to equity ratio founds a significant impact on Size and Return on Assets. Furthermore, it is recommended that other firm specific factors can also be used with a more wider time span like Dividends, Taxes etc to gauge the impact and end with a more accurate outcome. This Study will eventually benefit the finance mangers to define an optimal capital structure and also the research community by providing new knowledge regarding the impacts of capital structure. Though, other major economies can also be examined with different other industries to check the deviation of capital structure formation.
Mostafa Hosseinzadeh; Saeid Valadbeigi; Amin Azizi; Sanam Bakhtiarnezhad
Volume 3, Issue 2 , February 2016, , Pages 147-159
Abstract
The main purpose of this research is to study the relationship between capital structure and firms’ economic performance separated by ownership. This study measures capital structure by company’s total liabilities and total assets; and economic performance and ownership structure are weighted ...
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The main purpose of this research is to study the relationship between capital structure and firms’ economic performance separated by ownership. This study measures capital structure by company’s total liabilities and total assets; and economic performance and ownership structure are weighted by the two dimensions of institutional and corporate ownerships. Research used systematic elimination sampling method. Research statistical population included listed companies in Tehran Stock Exchange (414 companies) within 2009 to 2012. Sample volume determined as 88 companies. Research objectives are applied and it is considered as a correlation study. Research data collected through using stock exchange software. Further, collected data analyzed using SPSS software. The research used descriptive and inferential statistics (Spearman test). Results of research hypotheses show that economic performance in companies with institutional ownership is inversely related to capital structure; whereas, in non-institutional economic ownership (corporate ownership) no correlation is seen with capital structure.
Mahmoud Nozarpour; Hamid Norouzi
Volume 2, Issue 6 , June 2015, , Pages 538-546
Abstract
The main goal of this study is to investigate the effect of capital structure and growth opportunities on earnings management in companies accepted in Tehran securities exchange during 2008 to 2013. Before data analysis, Chow test was applied to determine the appropriate model to estimate parameters ...
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The main goal of this study is to investigate the effect of capital structure and growth opportunities on earnings management in companies accepted in Tehran securities exchange during 2008 to 2013. Before data analysis, Chow test was applied to determine the appropriate model to estimate parameters and independent variables effect on dependent variable. Then, research hypotheses were tested through pooled data method. Research results showed that there is a significant relationship between capital structure index financial leverage and earnings management. Also, research showed that there is a nonlinear and significant relationship between growth opportunities and earnings management and growth opportunities have a significant effect on this relationship.
Roya Mansourlakoraj; Sahar Sepasi
Volume 2, Issue 2 , February 2015, , Pages 144-148
Abstract
The current research attempts to investigate the relationship between the free cash follow and capital structure and value of listed companies in Tehran Stock Exchange. For this reason, 80 companies were investigated during 2009-2013. Lehn. & poulsen and debt leverage models were used to measure ...
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The current research attempts to investigate the relationship between the free cash follow and capital structure and value of listed companies in Tehran Stock Exchange. For this reason, 80 companies were investigated during 2009-2013. Lehn. & poulsen and debt leverage models were used to measure the free cash flow and capital structure respectively. The firm value was also calculated by Tobin’s Q. Findings showed that free cash flow and capital structure have significant and positive effects on firm value.
Morteza Kazempour; Mohammad Ali Aghaei
Volume 2, Issue 2 , February 2015, , Pages 149-152
Abstract
This study investigated the relationship between capital structure and firm performance in firms operating on the Tehran Stock Exchange (TSE). Capital structure was measured by debt leverage. Firm performance was measured using the Tobin’s Q. The sample size was 100 companies operating on the exchange ...
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This study investigated the relationship between capital structure and firm performance in firms operating on the Tehran Stock Exchange (TSE). Capital structure was measured by debt leverage. Firm performance was measured using the Tobin’s Q. The sample size was 100 companies operating on the exchange during 2008-2013. The results showed a significant positive relationship between capital structure and firm performance.
Amir Motahedin; Ehsan Mirmostafaee
Volume 1, Issue 1 , August 2014, , Pages 28-36
Abstract
This study was conducted to investigate the relationship between capital structure policies and the lifecycle of listed companies in Tehran Stock Exchange. In order to achieve this aim, a main hypothesis and three sub-hypotheses were developed and a multivariate linear regression was used to test research ...
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This study was conducted to investigate the relationship between capital structure policies and the lifecycle of listed companies in Tehran Stock Exchange. In order to achieve this aim, a main hypothesis and three sub-hypotheses were developed and a multivariate linear regression was used to test research hypotheses. This research was performed on 187 listed companies in Tehran Stock Exchange based on the information contained in financial reports from 2005 to 2011. In this research companies are divided into two groups: companies in the growth stage and companies in the maturity stage; and capital structure is composed of net debt issue, retained earnings and equity. The research results showed that the effect of the deficit on net debt issue was higher in companies in the growth stage compared to companies in the maturity stage, but was no significant and also the effect of the deficit on net equity and retained earnings in companies in the growth stage was higher compared to companies in the maturity stage and was significant. The research main hypothesis also showed that companies in the growth stage follow the hierarchical theory more than companies in the maturity stage, but it is not significant.