Investigating the Effect of Financial Constraints and Different Levels of Agency Cost on Investment Efficiency
Journal Title: Advances in Mathematical Finance and Applications - Year 2017, Vol 2, Issue 4
Abstract
This research attempts to investigate the effect of financial constraints and different levels of agency costs on the investment efficiency of companies in Iran. Following the design of the financial risk assessment indexes, the transaction information was collected from the Stock Exchange in the five-year period of 2011-2015. The statistical sample consists of 128 companies selected by sampling method based on Cochran formula in which totally obtained 640 year-firm data. Linear regression and correlation were used to investigate the hypotheses of the research. Also Eviews software was used to analyse the data and test the hypotheses. What is summarized in the overall conclusion of the research hypothesis test is that financial constraints are effective on investment performance based on the indicators (kz) and (ww), as well as the various levels of agency costs, including high and low agency costs effect on investment efficiency.
Authors and Affiliations
Mahdi Agah, Hossein Malekpoor, Arman Bagheri
Keywords
Related Articles
- EP ID EP476043
- DOI 10.22034/AMFA.2017.536264
- Views 65
- Downloads 0
Inflation, Operating Cycle, Cash Holding
The purpose of this paper is to examine the effects of inflation and operating cycle on cash holding in Tehran Stock Exchange in the period 2010 to 2014.The sample is comprised of 103 companies which are selected by syst...
An Investigation of Financing Costs Factors on the Auditor's Qualified Report in the Companies Listed in Tehran Stock Exchange
The purpose of this study was to an investigation of financing costs factors on the auditor's qualified report in companies listed in Tehran stock exchange. The criteria considered in this study were the audit firm size,...
Comparison of Public Investment Approaches on Social Welfare Function: A Case Study of Iran
The use of natural resource revenues for achievement of development has been a challenging issue for resource abundant countries. These challenges stem from the fact that incomes from natural resources are non-durable, u...
An Analysis of the Repeated Financial Earthquakes
Since the seismic behavior of the earth’s energy (which follows from the power law distribution) can be similarly seen in the energy realized by the stock markets, in this paper we consider a statistical study for compar...
Explaining the Relationship Between Sticky of Expenses with Prediction Error of Profit in Tehran Stock Exchange
One of the basic assumptions of management accounting illustrate that costs changes has a significance Relationship with increasing and decreasing in the level of activity, recently after being raised of sticky costs iss...