The Impact of the Level Liquidity on the Risk of Financial Distress of Companies Listed In the Tehran Stock Exchange

Subject Areas : Industrial Management

Shokraleh Khajavi ¹

1 - Associate Professor of Accounting, Shiraz University, Shiraz, Iran

Received: 2016-02-15 Accepted : 2016-07-18 Published : 2017-02-06

Keywords:

Abstract :

This study examines the impact of liquidity on the risk of Financial Distress company pays.  For assessing the level of liquidity of model Opler and for assessing the risk of Financial Distress than two patterns Ohlson (1980) and Zavgyn (1985) is used. To analyze the hypothesis of correlation test and multiple linear regression in two ways Enter and Stepwise is used.  This research is qualitative in terms of approach and practical in terms of objectives. Also, the method of correlational research survey is used. Statistical population in this research, listed companies in the Tehran Stock Exchange and the sample included 63 companies during the period 2009 to 2013. According to the Analysis and hypotheses of the study results show that level of liquidity risk of Financial Distress companies affected and with reduced levels of liquidity Financial Distress raises and one of the solutions run companies of the risk of Financial Distress in possession of sufficient cash to meet its cash needs on time.

References:

1. Ahadi Sarkani, SY, Sang Pahni,H, and Dsynh, M. (2013). Examining of relationships within the company and outside the company with cash holdings in companies listed in Tehran Stock Exchange. Journal of Quarterly Stock Exchange. 23: 77-101.


2. Faulkender, M, and Wang, R. (2006). Corporate Financial Policy and the Value of Cash. The Journal of Finance. 4:1957-1990.


3. Kim, C.S, Mauer, D.C, and Sherman, A.E. (1998). The determinants of corporate liquidity. Theory and evidence. Journal of Financial and Quantitative Analysis. 33: 305-334.


4. Kordestani, GR,khaiuor, F, and Ashtab, A. (2011). Compared performance financial ratios based on cash method and accrual method for predicting financial distress in listed companies in Tehran Stock Exchange. Journal of Quarterly Stock Exchange. 15: 191- 205.


5. Mehrani, S, Kashanipoor, M, and Rasaiian, A. (2009). The determinants of capital structure in Iran. Journal of Bulletin economic. pp. 125-151.


6. Ozkan, A, and Ozkan, N. (2004). Corporate cash holdings: an empirical investigation of 11 - UK  companies.  Journal  of  Banking  and Finance. 28: 2103–2134.


7. Qadiri Moghaddam, A, Ghlampvrfrd, M.M, and Nasirzadeh, F. (2009). Examine the expertise of models bankruptcy prediction Altman and Ohlson of companies listed in Tehran Stock Exchange. Journal of Knowledge and Development (scientific and research), the sixteenth year. 28.


8. Rasaiian, A, Rahimi, F, and Hnjry, S. (2010). Impact of monitoring mechanisms inter- organizational corporate governance on cash holdings in Tehran Stock Exchange. Research Journal the Financial Accounting. 4 (6), 125-144.


9. Rezai, F, and Goldoz, M. (2011). Compare the predictive power patterns bankruptcy Zavgyn,  Ohlson and Shyrata in of companies listed in Tehran Stock Exchange. Journal of Management Development and Transformation. 6: 69-81.


10. Sadeghi, H, Rahimi, P, and Salmani, Y. (2014). The effect of macro-economic and Corporate Governance of the financial distress companies listed on Tehran Stock Exchange. Journal of Quarterly Economics, Financial (Knowledge and Development), new course, year 21. 8.


11. Setaiesh, M H, and Karimipour, E. (2013). The effect of conservatism conditional and unconditional on distress risk listed in Tehran Stock Exchange. Journal of quarterly Tehran Stock Exchange. 24: 5-39.