The Effect of Financial Development on the Financing of Listed Companies in Tehran Stock Exchange
Subject Areas :
Naem
Eslamdust
1
(کارشناس ارشد مدیریت بازرگانی دانشگاه آزاد اسلامی واحد علوم و تحقیقات تهران)
Elham
Gholami
2
(استادیار دانشگاه آزاد اسلامی ـ واحد تهران علوم و تحقیقات تهران)
Keywords: financing, Panel Data, Financial Development, Automotive Industry,
Abstract :
The main objective of the study was to investigate the effect of financial development on the financing of companies listed on the stock exchange, which are related to the automotive-related industries. To this end, the effects of four indicators of financial development, along with control variables such as profitability, liquidity and size of the company, have been investigated in the form of two regression models on two variables related to financing, namely, proportional relationship of both long-term debt and short-term debt to total assets. So that the two models, with the panel data taken from the 50 companies involved in automotive industry and active in stock exchange between the years 2011 to 2016, are assessed using fixed effects. The results show that stock market development has a positive and significant effect on the ratio of long-term debt to total assets. Meanwhile, the effect of the index on the stock market activity is more than the magnitude of the impact of the index relative to its size. However, the effect of the development of the banking sector on this ratio is negative and the effect of the indicator on the banking system activity is more than the magnitude of the impact of the index relative to its size.
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