The Effect of Financial Distress on the Investment Behavior of Companies Listed on Tehran Stock Exchange
Journal Title: Advances in Mathematical Finance and Applications - Year 2018, Vol 3, Issue 4
Abstract
The purpose of this study was to determine the effect of financial distress on investment behavior for the years of 2011 to 2016. The statistical population of the research is Tehran Stock Exchange. According to the systematic elimination method, 104 companies have been selected as the statistical sample. In this research, financial distress is independent variable and corporate investment behavior is dependent variable and investment opportunities is considered as interactive variable. The present research is an applied research and in terms of methodology is a correlational study. In this research, for collecting data and information, library method and in the research data section, financial statements, explanatory notes and monthly magazine of stock exchange, and in order to describe and print the data collected, descriptive and inferential statistics and to analyze the data, pre-test variance analysis, F-limmer test, Hausman test and Jarck-Bera test, and then multivariate regression test for confirmation and rejection of research hypotheses (EViews software) were used. The results showed that firms with less investment opportunities tend to be less likely to invest, in addition distressed financially firms with more investment opportunities are more likely to increase investment.
Authors and Affiliations
Roya Ahmadi, Hamidreza Kordloei
Keywords
Related Articles
- EP ID EP461070
- DOI 10.22034/AMFA.2019.565459.1108
- Views 59
- Downloads 0
Investigating the Impact of the Financial Crisis on Conservative Accounting and Transparency of Banking Information
The phenomenon of the financial crisis is not a new phenomenon around the world. The structure of an economy or a set of economies may face a financial crisis. In fact, it is deformation, dimensions, causes and roots of...
Salience Theory and Pricing Stock of Corporates in Tehran Stock Exchange
How the investors react to the received information plays a crucial role in determining the return of stock exchange market. Supply and demand based upon incorrect decisions lead to the price deviation of inherent values...
Investigating the relationship among information asymmetry, dividend policy and ownership structure
The purpose of a financial manager in dividend policy is to maximize the wealth of its owners while providing adequate funds for the company. In this research, the aim is to determine the relationship between information...
American Option Pricing of Future Contracts in an Effort to Investigate Trading Strategies; Evidence from North Sea Oil Exchange
In this paper, Black Scholes’s pricing model was developed to study American option on future contracts of Brent oil. The practical tests of the model show that market priced option contracts as future contracts less tha...
Remuneration of Non-Executive Independent Directors Review the View of Representation Theory
Management is trying to maximize your rewards and that means in terms of net profit, return on investment (performance) or other accounting measures and also by trying to Making positive changes in the prices of corporat...