The Effect of Economics Uncertainty on speed of adjustment to target leverage
Subject Areas : Journal of Investment Knowledge
Mohamad Ali
ahmadi
1
(Department of Accounting, Ahvaz Branch, Islamic Azad University, Ahvaz, Iran.)
Allah Karam
Salehi
2
(Department of Accounting, Masjed-soleiman Branch, Islamic Azad University, Masjed-soleiman, Iran)
Saeed
Nasiri
3
(Department of Accounting, Ahvaz Branch, Islamic Azad University, Ahvaz, Iran.)
Alireza
jorjorzadeh
4
(Department of Accounting, Ahvaz Branch, Islamic Azad University, Ahvaz, Iran.)
Keywords: "Economics Uncertainty, ", "speed of adjustment to target leverage", " target leverage",
Abstract :
The aim of this study is to investigate the effect of Economics Uncertainty on speed of adjustment to target leverage of listed Companies in Tehran Stock Exchange. These Four criteria have been used for measure of Economics Uncertainty in our tests: GDP growth, inflation rate, exchange rate and interest rates. Using ARCH and GARCH For this purpose two hypotheses are developed and data on the 142 companies in Tehran Stock Exchange for the period of 1389 to 1397 were analyzed. For This regression model using Two-step regression Fama-MacBeth, reviews and tests. The results showed that the criteria of Economics Uncertainty (GDP growth, inflation rate, exchange rate and interest rate) has significant positive impact on speed of adjustment to target leverage. Moreover, the results showed that the effect of Economics Uncertainty (GDP growth, inflation rate, exchange rate and interest rate) on speed of adjustment to target leverage in firms with a above-target leverage adjust their leverage More than in firms with a below-target leverage adjust their leverage.
of nonfinancial firms. Economic Inquiry 47(2), 216-225.
structure and macroeconomic risk. Review of Financial Studies 23(12), 4187-4241.
Journal of Finance 65(6), 2171-2212.
capital structure: Evidence from a pooled sample of the Dow-Jones industrial firms. International Review of Economics & Finance 11(1), 45-55.
Review, No. 65, 1-28
_||_