Investigating the effect of financial constraints on the investment of selected companies: the approach of the Panel VAR model
Subject Areas : Financial Economics
hamed maboudi
1
,
roya seyfipour
2
,
azade mehrabin
3
1 - -
2 - Faculty of Economics Department, Tehran Center
3 - Islamic Azad University, Central Tehran branch
Keywords: Investment, financial limitation, panel vector autoregression method,
Abstract :
The high importance of investment at the micro level and the effects of its aggregation on macroeconomic variables and financial constraints in the investment process in Iran have created an incentive to investigate the impact of shocks caused by financial constraints on the investment of selected companies of the Tehran Stock Exchange. is For this purpose, data on the growth rate of companies' sales, return on assets, interest coverage rate, logarithm of companies' assets, financial leverage and also the financial constraint index for 163 selected stock companies in the period from 1390 to 1399 have been used with the Panel VAR method. . The results of this research show that the shocks of companies' sales growth rate and financial constraints will have a significant impact on the amount of investment of companies in the short and long term. The shocks of the rate of return on assets, the amount of assets and financial leverage have little effect on the amount of investment of companies in the short term. Also, the results indicate that the effect of the shock caused by the interest coverage rate on the amount of investment of the selected companies under investigation is insignificant in the short and long term. The results of the analysis of variance also showed that the variables of companies' sales growth rate and financial limitations are the most explanatory in relation to explaining the investment behavior of companies.