Analytical Analysis the Impact of Economic Complexity Index & Business Strategies on Firms’ Capital Expenditure under Iran's Vision Plan

Subject Areas : Journal of Investment Knowledge

Mohammad  Hassani ¹ (Assistant Professor in Accounting, Department of Accounting & Auditing, Faculty of Management, Islamic Azad University-Tehran North Branch, Tehran, Iran)

Received: 2019-12-17 Accepted : 2020-02-04 Published : 2022-06-22

Keywords: Business Strategies, Economic Complexity Index, Capital Expenditure,

Abstract :

This research analyzed the impact of economic complexity index & business strategies on firms’ capital expenditure analytically. The importance of this study is consistent to Iran's vision plan goals which in achieving to economic growth & development, using advanced knowledge and ability to use new sciences & technologies require appropriate investment decisions at micro level. Research population includes 166 firms listed in Tehran Securities & Exchange over the period March 2012 till March 2018. Research Hypotheses investigated by using multivariate regression models based on panel data with fixed effect and generalized least squares method. Research findings showed that more economic complexity index lead to managers to invest more because of reaction to economic environment conditions. Also, defensive strategy had meaningful and negative impact, but prospective strategy had meaningful and positive impact on firms’ capital expenditure. However, analytic strategy had on impact on firms’ capital expenditure. Complementary evidences illustrated that interaction between defensive strategy and economic complexity index had meaningful and negative impact, but interaction between prospective strategy and economic complexity index had meaningful and positive impact on firms’ capital expenditure. However, interaction between analytic strategy and economic complexity index had on impact on firms’ capital expenditure.

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