Opaque Information, Deviation from Target Leverage and Speed of Adjustment
Journal Title: Communications in Nonlinear Analysis - Year 2019, Vol 4, Issue 2
Abstract
Information opacity leads to information asymmetry. In this situation, in providing their own financial needs, firms face limitations and inevitably provide their financial needs from the debt market by signalling private information to it. In addition, information opacity affects the leverage adjustment speed. This research investigates the effect of information opacity on deviation from target leverage and its’ adjustment speed during 2003 - 2017 in 131 firms listed in Tehran Stock Exchange. To estimate the research models, we use the regression analysis with panel data approach, the approach to control the effects of years and industries and the generalized method of moments with system estimator (system GMM). The research results show that the increase in information opacity increases (decreases) the positive (negative) deviation from target leverage. Also, research findings indicate that the increase in information opacity decreases the adjustment speed.
Authors and Affiliations
Abbas Aflatooni, Kefsan mansouri
Keywords
Related Articles
- EP ID EP648746
- DOI 10.22034/AMFA.2019.585872.1191
- Views 86
- Downloads 0
The Integration of Multi-Factor Model of Capital Asset Pricing and Penalty Function for Stock Return Evaluation
One of the main concerns of investors is the evaluation of the return on investment, which is conducted using various models such as the CAPM (single-factor model), Fama-French three/five-factor models, and Roy and Shiji...
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...
Improving Stock Return Forecasting by Deep Learning Algorithm
Improving return forecasting is very important for both investors and researchers in financial markets. In this study we try to aim this object by two new methods. First, instead of using traditional variable, gold price...
Optimal Coincidence best approximation solution in b-fuzzy metric spaces
In this paper, we prove the existence of optimal coincidence point and best proximity point in b-fuzzy metric space for two mappings satisfying certain contractive conditions and prove some proximal theorems which provid...
Prediction the Return Fluctuations with Artificial Neural Networks' Approach
Time changes of return, inefficiency studies performed and presence of effective factors on share return rate are caused development modern and intelligent methods in estimation and evaluation of share return in stock co...