Financial Leverage

Open Access Article

1 - Specification and Development a Model for Estimating of Accounting Conservatism in Iran
H. Nikoomaram B. Banimahd

Accounting conservatism has recently been under attacked. For example, Financial Accounting StandardBoard (FASB) point out that conservatism increase conflict between qualitative characteristics such asrepresentational faithfulness, neutrality, and comparability. The Bo More

Accounting conservatism has recently been under attacked. For example, Financial Accounting StandardBoard (FASB) point out that conservatism increase conflict between qualitative characteristics such asrepresentational faithfulness, neutrality, and comparability. The Board concludes that any attempt tounderstate results consistently is likely to raise question about the reliability and integrity of informationabout those results. Recently, in the IASB and FASB joint conceptual framework, conservatism andprudence have been abolished. In other side, some of researchers such as Professor Watts from the universityof Rochester tried to provide a better understanding of accounting conservatism in Accounting Horizon(2003). He defended accounting conservatism by documenting of the research results.Watts suggests thatconservatism likely evolved from the contracting role of accounting. He argues that accounting conservatismhelps to reduce agent's opportunistic behavior and mitigates conflicts of interest over dividend policybetween shareholders and bondholders.This study, by adopting of new studies outcomes on accounting conservatism, develops a new firm-levelconservatism measure from Givoly & Hayn (2000) accrual model. This measure represents conservatismmeasure from an income statement and balance sheet perspective. The outcomes of the study indicated thataccounting conservatism measure has positively correlated to return on asset (ROA) and sale growth, on theother hand, has negatively correlated to leverage and cash flows from operations to total assets ratio.The research results show firms experiencing more severe bondholder-shareholder dividend policy conflictsadopt less conservative accounting and firms that use more conservative accounting incur a high debt ratio.The results also suggest existence of high income smoothing and show a strict decrease in accountingconservatism in Iranian financial reporting environment. This decrease accompanies with decreases ofprofitability index (ROA) and economic performance index (CFO/Asset). It seems governmental ownershipand governmental management and lack of management accountability are important factors of this problemin Iranian industries. The outcomes of this study differ from the US studies results. Manuscript profile

Open Access Article

2 - An Investigation of Leverage Effect on Dividend Policy in Companies Listed on the Tehran Stock Exchange
بهمن بنی مهد علی اصغری

In this paper, we have  examined   relation  between financial leverage effect and  dividend policy  over a 7- period in 66 firms in Tehran Stock Exchange. We have found that   there is no relation between financial leverage and&n More

In this paper, we have  examined   relation  between financial leverage effect and  dividend policy  over a 7- period in 66 firms in Tehran Stock Exchange. We have found that   there is no relation between financial leverage and  dividend  policy . But, there is a  positive relation between firm size and  operating  cash flow  with dividend policy in study sample. The results of this study show that in emerging markets such as Iranian capital market , we could not find any agency theory implications on dividend policy Manuscript profile

Open Access Article

3 - The role of Liquid-claims, free cash flow and capital structure in optimizing financial leverage (Case study: Iran's Capital Markets Banking Industry)
Masomeh Azarnia Abd-Almajid Dehghan Ali Nobari Tabrizi

The purpose of this research is to investigate the role of liquid-claim, free cash flow and capital structure in optimizing financial leverage in active banks in the Iranian capital market. The statistical sample of 10 banks accepted in the capital market, whose informa More

The purpose of this research is to investigate the role of liquid-claim, free cash flow and capital structure in optimizing financial leverage in active banks in the Iranian capital market. The statistical sample of 10 banks accepted in the capital market, whose information was available for the period from 2006 to 2016, were selected by systematic elimination method. The research carried out in terms of the target type is a part of applied research and the research method is correlated in terms of content and content. The research has been carried out within the framework of deductive-inductive arguments. For analyzing the hypotheses, a panel analysis has been used. The results show that there is a significant relationship between liquid-claim and financial leverage optimization, between capital structure and optimizing financial leverage, between free cash flow and optimizing financial leverage, and between credit risk of the bank and optimizing financial leverage, but There is no meaningful relationship between type of ownership and financial leverage optimization. Manuscript profile

Open Access Article

4 - Investigating the effect of financial decentralization on the relationship between financial leverage and cautious financial reporting in companies admitted to Tehran Stock Exchange
Masoud Taherinia Mohammad Jafari Ali Hasanwand

Following the horrific events and crises that took place in the world's stock exchanges, especially in September 1997, and then the disclosure of Worldcom, Enron, Xerox and Parmalat in the world, and the collapse of the Tehran Stock Exchange in 2004, the issue of transp More

Following the horrific events and crises that took place in the world's stock exchanges, especially in September 1997, and then the disclosure of Worldcom, Enron, Xerox and Parmalat in the world, and the collapse of the Tehran Stock Exchange in 2004, the issue of transparency of financial statements The title of a phenomenon is of great importance. Therefore, the present study examines the effect of financial decentralization on the relationship between financial leverage and cautious financial reporting in companies admitted to Tehran Stock Exchange. To do this research, information Related to the research literature using the library research method and the use of various copper papers Pinch of Web sites collected and used. To test the hypotheses of this research, 119companies were utilized during 2011-2011. Initially, the research variables were identified and the required information related to financial statements was extracted from the Stock Exchange web-sites and in the extended section of the excel class These data were tested to test the hypotheses and research models that were estimated by panel data using SPSS 19 and Eviews 1software. The results of this study indicate that between financial leverage and financially sound reporting in companies Accepted in Tehran Stock Exchange has a direct and significant relationship D.hmchnyn fiscal decentralization on the relationship between financial leverage and aggressive financial reporting of listed companies in Tehran Stock Exchange is not affected. Manuscript profile

Open Access Article

5 - The Study Of Relationship Between Financial Leverage And Liquidity In Listed Firms Of Tehran Stock Exchange
Mahmood Yahyazadehfar Shahabeddin Shams Hooman Shababi Sakineh Abbaszadeh

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Open Access Article

6 - Financial Leverage, Cash Holdings and Firm Value in the Companies Listed in Tehran Stock Exchange: Investigating Non-linear and Hierarchical Relationships
اسماعیل توکل نیا مهدی تیرگری

In the recent years there has been a growing interest in corporate cash holdings in thefinance literature. This interest has been especially motivated by the fact that corporationshold significant amounts of cash in their balance sheets. The main purpose of this study i More

In the recent years there has been a growing interest in corporate cash holdings in thefinance literature. This interest has been especially motivated by the fact that corporationshold significant amounts of cash in their balance sheets. The main purpose of this study is toexamine the curvilinear relationship between financial leverage and corporate cash holdings.Also, this study examines the curvilinear relationship between cash holdings and firm value.The sample of this study, includes 105 companies listed in the Tehran Stock Exchange duringthe period 1386-1390 and for processing and testing hypotheses, regression method is used.Study findings support the U-shaped relationship between financial leverage and corporatecash holdings and between corporate cash holdings and firm value. Manuscript profile

Open Access Article

7 - Surveying the relationship between economic value added and financial leverage with risk- adjusted stock returns
Ghodratollah Talebniya Mohammad Imani Barandagh Askar Pourreza

Investment in firms is an process two subsequent (Risk and return). In theinvestment project cannot select only on base of return overhead ,too, we mustattend risk in our decision. Other hand ,now day for shareholder ,wealthearning is a topic purpose in the economic uni More

Investment in firms is an process two subsequent (Risk and return). In theinvestment project cannot select only on base of return overhead ,too, we mustattend risk in our decision. Other hand ,now day for shareholder ,wealthearning is a topic purpose in the economic unit's management .Economic valueadded(EVA) is a wealth earning measurement that in comparison of othermeasurements has more utility. There are various risk for the firm's stocks .so ,we can adjusted the return of firm's stocks on the base of stocks risk, thatsufficiency compression between various return stocks of market is possible .Inthis, main purpose of research, study mater correlation and sufficiencyexpression between EVA and financial leverage for various measurements riskadjustedstock returns (RVAR , RVOL ,α).Statistical society of this research iscompanies accepted in stock exchange of Tehran ,which ,forty five of them hasbeen selected as statistical sample. Research period is since 1382 to 1386.hypothesis testing research done in confidence level 95 percent .Researchresults show that ,there is no significant correlation between EVA andfinancial leverage with risk- adjusted stock returns for each of years separatelyand accumulated years and only there is a significant correlation between EVAand RVOL in 1382 Manuscript profile

Open Access Article

8 - Investigate earnings management at the sensitive earnings amounts’ threshold of companies with high financial leverage
SARA shafiee hamidreza kordlouie shadi shahverdiani maziyar ghasemi

10.30495/jma.2022.20206

The purpose of this study is to investigate real earings management on the threshold of sensitive amounts of earnings in companies suspected of earnings management and in terms of high financial leverage, which was conducted among 148 listed companies and their financia More

The purpose of this study is to investigate real earings management on the threshold of sensitive amounts of earnings in companies suspected of earnings management and in terms of high financial leverage, which was conducted among 148 listed companies and their financial information between 1392 and 1399. In this study, abnormal production costs and abnormal discretionary expenses for companies suspected of earings managing whose financial leverage was above average were examined in the three thresholds of zero- earnings, previous earnings and forecasted earnings. The results show that in all three profit thresholds, when the financial leverage is more than average, then this leverage has a negative and significant effect on abnormal production costs and abnormal discretionary expenses. Only in abnormal production costs of the previous earning threshold that no significant impact has been identified. Manuscript profile

Open Access Article

9 - The influence of competitive environment and business strategies on the relationship between firm's financial leverage and performance
فرزین رضایی حامد عازم

This study is concerned to investigate the influence of competitive environmentand business strategies on the relationship between firm's financial leverage andperformance.135 firms listed in TSE as samples during 1381-1388 were selected.Results corroborate not only the More

This study is concerned to investigate the influence of competitive environmentand business strategies on the relationship between firm's financial leverage andperformance.135 firms listed in TSE as samples during 1381-1388 were selected.Results corroborate not only there were negative and significant relation but alsoindustrial competitive intensity and business strategy had an influence significantly.These influences on firms with cost leadership strategy were further than firms withproduct differentiation strategy. Furthermore impact of industrial competitiveintensity on relationship between financial leverage &performance was positivelysignificant. Generally, firms with product differentiation strategy and active in highcompetitive intensity environment have the most impact on the relationship betweenfinancial leverage & performance. Meanwhile, other pair as to strategy andcompetitiveness had less impact on that relationship. Manuscript profile

Open Access Article

10 - Investigating the inverse U-shaped relationship between Working Capital Financing and Profitability with emphasis on the role of Firm Size and Financial Leverage using the GMM method
rahim mohammadi mohammadjavad shiekh mohammad seyrani maryam mardaneh

The purpose of this study was to investigate the effect of firm size and financial leverage on the relationship between working capital financing and profitability in companies listed on the Tehran Stock Exchange using panel data during the period 2013-18, through the g More

The purpose of this study was to investigate the effect of firm size and financial leverage on the relationship between working capital financing and profitability in companies listed on the Tehran Stock Exchange using panel data during the period 2013-18, through the generalized torque method. (GMM). The variables of firm size and financial leverage are moderators whose effect on the relationship between working capital financing as an independent variable and profitability as a dependent variable is studied. The results of the study showed that there is an inverse U-shaped relationship between working capital financing and profitability. Also, the inverse U-shaped relationship between working capital financing and profitability is weaker in firms with small firms than in large firms. Also, the inverse U-shaped relationship between working capital financing and profitability in companies with high financial leverage is weaker than other companies. In other words, the relationship between profitability and financing through working capital is adjusted by the financial leverage and size, and this adjustment goes to a certain extent and is reversed from then on, which is the breaking point. The relation series is U-shaped. Manuscript profile

Open Access Article

11 - Clarifying the model of influential criteria in production growth with the approach of shareholders' value creation
Seyed Mohialddin Seraj Fazel Mohammadi Nodeh sina kherdyar

Abstract:The purpose of this research is to explain the pattern of effective criteria in the growth of production with an emphasis on creating value for shareholders in companies admitted to the Tehran Stock Exchange. In line with the purpose of the research, research i More

Abstract:The purpose of this research is to explain the pattern of effective criteria in the growth of production with an emphasis on creating value for shareholders in companies admitted to the Tehran Stock Exchange. In line with the purpose of the research, research information was collected from the financial statements of listed companies in the period of 2010-2020. Multivariate regression method with panel data was used for statistical analysis. The findings of the research model test show that the rate of return on assets, current ratio, company size, financial leverage, stock liquidity, CEO tenure, political connections have a significant effect on the added value of shareholders. Manuscript profile

Open Access Article

12 - Explaining the credit rating model in the investment industry
Samaneh Pahlavan mohammadhamed Khanmohammadi shohreh yazdani

The purpose of this research is to study the explanation of the credit rating pattern in companies accepted in the investment industry of Tehran Stock Exchange. For this purpose, relevant information was extracted from the financial statements of the companies listed on More

The purpose of this research is to study the explanation of the credit rating pattern in companies accepted in the investment industry of Tehran Stock Exchange. For this purpose, relevant information was extracted from the financial statements of the companies listed on the stock exchange. The research period was considered from 1390 to 1400. For statistical analysis, regression estimation with panel data was used. The results of the first hypothesis test of the research show that the variables of presence in foreign exchange industries, ratio of operating cash flow to debt, ratio of operating profit to interest expense, company size, financial leverage, current ratio, cash ratio have a significant effect on credit rating. have. Manuscript profile

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13 - Studying the Role of Marketing Intensity on the Relation of Financial Leverage and Firm Function
Khosro Dalvand Mahtab Tabatabaie

10.22034/amfa.2018.544947

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14 - Financial Statement Comparability and the Expected Crash Risk of Stock Prices
Barhram Parsa Fatemeh Sarraf

10.22034/amfa.2018.544951

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Open Access Article

15 - Analysis of Financial Leverage, Operating Leverage and Capital Venture Effect on Tobin's Q Ratio of Investment and Holding Companies Listed in Tehran Stock Exchange
Saeid Baseri Amir Hakaki

10.22034/amfa.2018.539137

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Open Access Article

16 - Impact of Long-term Debt on Overinvestment Problem of Agency
Azade Shahab Mohammad Mohammad Zaheri Nahid Asadi

10.22034/amfa.2017.536269

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Open Access Article

17 - Investigate Factors Affecting on the Performance of Agricultural Machinery Companies Based on Taxonomy Algorithm
Vahide Hajihassani

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Open Access Article

18 - The Effect of Exchange Rate Volatility on Marketing and Profitability of Companies Agricultural
Nasrollah Maghsoudi

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19 - Investigating the relationship between Managers' Gender Diversity and Financial Leverage with respect to the moderating role of CEO Power
حبیب اله نخعی بهاره کریم زاده سهیل صیادی لطف آبادی

10.30495/qrm.2023.705449

AbstractThis research has investigated the relationship between gender diversity of managers and financial leverage, considering the moderating role of the CEO's power in the capital market (Tehran Stock Exchange). In this research, relying on the existing theories, the More

AbstractThis research has investigated the relationship between gender diversity of managers and financial leverage, considering the moderating role of the CEO's power in the capital market (Tehran Stock Exchange). In this research, relying on the existing theories, the answer to this question was investigated whether the influence of female managers on the leverage of the company is moderated by the power of the CEO or not. Advanced research, by testing the efficiency of scientific topics and developing applied knowledge about the correlation between variables in order to adapt to the previous theoretical literature, from the aspect of the applied goal, from the aspect of the quantitative research process, from the aspect of the method of collecting and analyzing information. Descriptive correlation and logically, it is an inductive research. In order to test the hypotheses in the research models, the information of the companies accepted in the Tehran Stock Exchange during the period 1390 to 1399 was used for the main purpose of the research. The information of 143 companies was collected, processed and analyzed by appropriate descriptive statistics methods and inferential statistical methods to identify the type of composite data and using R statistical software. The results showed that there is a significant relationship between the gender ratio of managers and the financial leverage of the company. There is a significant relationship between the existence of female gender among the managers and the financial leverage of the company. CEO power does not moderate the relationship between managers' gender ratio and firm's financial leverage. The power of the CEO does not moderate the relationship between the presence of female gender among managers and the company's financial leverage.Keywords: Gender diversity of managers, Financial leverage and CEO power. Manuscript profile

Open Access Article

20 - The relationship between the five major factors of the CEO's character and the financial variables
ali taghavi moghaddam abolghasem masehabadi mohamadreza shorvarzi alireza mehrazin

One foundation of corporate success is to have qualified and efficient managers.. Managers’ qualification depends on their behaviors, personality traits, and views rather than on their knowledge and skills. The present research is in the field of applied research More

One foundation of corporate success is to have qualified and efficient managers.. Managers’ qualification depends on their behaviors, personality traits, and views rather than on their knowledge and skills. The present research is in the field of applied research and correlation type. The statistical population of this study is all companies accepted in Tehran Stock Exchange in 2015. A systematic elimination method was used to determine the statistical sample and for the selected companies the questionnaire was sent and 52 companies that responded in the statistical sample of this research were placed. Research hypotheses have been obtained by means of structural equation model with partial least squares test (PLS) method. In order to assess personality traits of CEOs, five - element of NEO was used and financial leverage and profitability variable were selected to conduct the study. The results of this study revealed that there was a positive and significant correlation between personality traits of CEOs and financial leverage, and profitability. Among the personality traits, there is a positive and meaningful relationship between the CEO's extraversion with financial leverage and profitableness and there is a negative and significant relationship between the CEO's Conscientiousness and financial leverage. Also, there is a negative and significant relationship between agreeableness and profitability of positive relationship Openness with profitability. Manuscript profile

Open Access Article

21 - The relationship between financial leverage, firm growth and financial strength in Tehran stock exchange companies.
Jamal Tavosi AbdolAli Keshtegar Aminreza Kamalian

This study attempts to extend knowledge of Financial Leverage, firm growth, and Financial Strength in the Tehran stock exchange companies. The pioneering work of many researchers showed that financial leverage is one of the most effective factors in growth companies. Th More

This study attempts to extend knowledge of Financial Leverage, firm growth, and Financial Strength in the Tehran stock exchange companies. The pioneering work of many researchers showed that financial leverage is one of the most effective factors in growth companies. This study examined the question is whether the company's financial leverage has an impact on growth? Therefore, we examined the issue using a sample of 52 listed companies in Tehran Stock Exchange in the years of 1384 to 1395. Company growth is measured by the growth of total assets, profits, and the Altman Z score measure sales and financial strength. The overall results of the study using panel data showed that financial leverage has a significant negative with profit growth, sales growth, and financial strength and has a positive and significant relationship with assets growth. this study has provided new suggestions for future studies that other researcher can use those for their studies. Manuscript profile

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22 - The Impact of Computer Utilization on Human Resource Productivity in Industrial Administrative Section
Maryam Khalili Araghi Kazem Fathi Moghanlu

Implicit cost of capital is one of the main themes in financial literature on decision making and selection of optimal strategics related with investment of founds and capital structure in order to increase the whole value of economic entity. In this respect financing i More

Implicit cost of capital is one of the main themes in financial literature on decision making and selection of optimal strategics related with investment of founds and capital structure in order to increase the whole value of economic entity. In this respect financing in general and implicit cost of capital in particular are focused. The aim of this research is to study and identify the relationship between creation of changes in capital of companies and also the factors affecting implicit cost of capital. Statistical community of this research consists of companies listed in Tehran stock exchange and the sample of this study includes 108 active companies during 1383-1387. Data required in this study were collected from state office of securities exchange information and statistics. In this research the type of relationship between hypotheses was of correlational one. And regression are used in order to test the hypotheses. Soft wares Excel and SPSS are used for doing calculation and estimation of regression models. Manuscript profile

Open Access Article

23 - Modeling the Factors Affecting the Capital Structure in Companies Listed on the Tehran Stock Exchange, the Approach of Bayesian Averaging Model
Zahra Talebi Mohammad Sokhanvar Tahereh Akhoondzadeh

10.30495/eco.2023.1980503.2731

The capital structure, meaning the way the company is financed, affects the value of the company, the relationship between the components of the capital structure, which is a mixture of bonds and stocks for financing, has a significant effect on the performance results More

The capital structure, meaning the way the company is financed, affects the value of the company, the relationship between the components of the capital structure, which is a mixture of bonds and stocks for financing, has a significant effect on the performance results of companies, the aim of the research is to model the factors affecting the capital structure in companies listed on the Tehran Stock Exchange (the approach of Bayesian averaging (BMA), This research is practical in terms of purpose and correlational in terms of nature. In order to achieve the goal of the research, 175 companies were selected from among the companies admitted to the Tehran Stock Exchange during the years 1390 to 1400 by systematic elimination method and considered as the main sample.In order to identify the most important variables affecting the capital structure, the BMA model has been used. Based on this, 61 identified variables affecting the capital structure were included in the Bayesian averaging model. These variables were divided into two categories of internal and external factors. Based on previous probabilities, 17 variables were identified as important variables on capital structure. Among these variables, 10 intra-company variables (type of ownership; net operating profit; current ratio; total assets turnover ratio; interest rate coverage ratio; debt-to-equity ratio; beta per share; accrual profit management; financial distress and tax) and 7 external variables (inflation, exchange rate, budget deficit, business climate index, economic resilience index, sanctions index, capital market depth) were effective on the capital structure Manuscript profile

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24 - Government Debt and Corporate Capital Structure: Testing of the Financial Crowding Out Effect Hypothesis
somaye sadeghi

10.30495/eco.2022.1946969.2604

This paper examines the relationship between government debt and corporate capital structures (financing choices) for firms listed in Tehran stock market, during 1390-98. The results show that the there is a negative and significant relationship between government debt More

This paper examines the relationship between government debt and corporate capital structures (financing choices) for firms listed in Tehran stock market, during 1390-98. The results show that the there is a negative and significant relationship between government debt and corporate capital structure (financial leverage), although the estimated coefficient is relatively small. In other words, we can conclude that the financial crowding out effect is confirmed in Iranian companies. Also, the results show that corporate with larger size and more profitable are more likely to react to changes in government debt. In other words, if corporates have larger size and more profitability, then the financial crowding out effect is greater. Hence, the key conclusion is corporate managers should prioritize revenue diversification and profitability strategies in the reaction to government debt policies. Manuscript profile

Open Access Article

25 - The Effect of Financial Leverage and Cash Holding on Over-investment according to the Firm Size and Firm Life Cycle of Listed Companies in Tehran Stock Exchange
Mostafa Sargolzaei Pouriya Zivary Kamran

Adequacy (efficiency) of investment is one of the most important issues in financial management. How to use the company's resources, especially internal funds, is an important decision in the conflict between shareholders and managers. By choosing the right combination More

Adequacy (efficiency) of investment is one of the most important issues in financial management. How to use the company's resources, especially internal funds, is an important decision in the conflict between shareholders and managers. By choosing the right combination of assets and liabilities, managers try to achieve the goal of maximizing the value of the company's stock. In this study, the effect of liquidity and financial leverage of the company on over-investment as well as the effect of firm size and company life cycle in this regard has been investigated. This study is an applied research in terms of purpose and a correlational study using generalized method of moments (GMM) in terms of nature. To test the research questions using systematic elimination method, a sample of 174 companies among the firms listed in the Tehran Stock Exchange during the period of 6 years in (2014-19) selected. The results showed that financial leverage has an adverse effect on over-investment and the effect of cash retention on over-investment is positive. Firm size and life cycle also affect the relationship between financial leverage and cash retention over-investment. Manuscript profile

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26 - Explain of the best capital structure with investigation of the relationa between financial leverage and some of functional variable
M. Fatoreh Bonabi Y. Heyvadi A. Sahebgharani

Maximize of capital structure returns and decision making with investigation of financial and functional variables is the two important subjects for management. In fact studying these variables give important signals to managers about the profitability of the firm, solv More

Maximize of capital structure returns and decision making with investigation of financial and functional variables is the two important subjects for management. In fact studying these variables give important signals to managers about the profitability of the firm, solvency and the financial strategy of the firm. In this research we attempt until with investigation of relation between financial leverage and some of financial and functional variable, designing a model for maximize the capital structure return. For reach to research goal we study the TSE̛ companies from 1381 to 1392, then we have chosen 100 sample and with the some of research method that consist of F- limer, Hausman and regression assumption test we examine the research hypothesis. Finally the results showing that there are considerable relation between financial leverage with Q/B ratio, profit quality, cash return of assets, net profit margin and growth rate of assets. Also there aren’t considerable relations with effective tax ratio and collateral value of assets. Manuscript profile

Open Access Article

27 - Investigion Internal Properties in the Quality of Financial Reporting of Companies listed in Tehran Stock Exchange
Younes Nobakht Mohammad Hasan Janani MohammadReza Moazzami Goodarzi

The research related to domestic companies listed in Tehran stock exchange for the five internal characteristics of quality financial reporting has been investigated. Statistical community, all companies listed in Tehran stock exchange isachieved by the systematic remov More

The research related to domestic companies listed in Tehran stock exchange for the five internal characteristics of quality financial reporting has been investigated. Statistical community, all companies listed in Tehran stock exchange isachieved by the systematic removal of sample of 84 companies to be selected and Time periods from 1387 to 1392 is investigated. For doing this research from methods of causal - comparative advantage is solidarity. The study analyzed data from the Inter regression methods were used. Results of hypothesis testing research shows The quality financial reporting of listed companies in Tehran Stock Exchange whit size, the investment in non-current assets, complexity of the environment activity company Direct relationship and whit operating cycle Inverse relationship has been established In this study, there character between the quality of financial reporting and financial leverage has not established any relationship. Manuscript profile

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28 - The Influence of working capital management on Profitability of Companies listed in Tehran Stock Exchange
امید فرمان آرا میثم عارف نژاد محبوبه جعفری

Abstract Economic enterprises are effectively participating in economic sphere. Two indicators of liquidity power and profitability financially determine this effectiveness. The so-called profitability is the sign of the firm's health and the power of liquidity is the More

Abstract Economic enterprises are effectively participating in economic sphere. Two indicators of liquidity power and profitability financially determine this effectiveness. The so-called profitability is the sign of the firm's health and the power of liquidity is the survival sign of the economic enterprise. In other words, if a company is not profitable, then it's sick, but if there is no liquidity, its survival is in danger. While, both of these factors are important, but liquidity has a higher level of importance. The aim of this research is to investigate the relationship between financial leverage and working capital management and its impact on profitability and performance indicator of listed companies in Iran’s capital market. The statistical sample has been selected by using the available systematic elimination method that has been studied from 2010 to 2014. Research hypotheses were examined by using the linear regression, and regression results among the study sample showed that there is a positive and significant relationship between the combination of working capital and the economic value added of the companies listed in Tehran Stock Exchange, and this relationship will be reversed by the mediator impact of financial leverage; but this relationship was not observed among companies operating in Iran’s OTC market. The results also showed that the working capital combination does not have a significant impact on the variables of financial leverage and the ratio of return on equity in companies active in Tehran stock exchange organization and Iran's OTC market. Manuscript profile

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29 - Explaining the Pattern of Measuring the Environmental Uncertainty and Its Effect on the Fluctuation of Companies' Financial Characteristics
sadegh yousefnezhad Farzaneh Heydarpoor

10.30495/faar.2023.707965

Abstract Environmental uncertainty refers to the unpredictability and complexity of factors surrounding the company that can affect the company's operations, strategy, and results. Companies must navigate this uncertainty to make informed decisions and effectively adap More

Abstract Environmental uncertainty refers to the unpredictability and complexity of factors surrounding the company that can affect the company's operations, strategy, and results. Companies must navigate this uncertainty to make informed decisions and effectively adapt to changing circumstances. The main goal of this research is to explain a model for measuring companies' environmental uncertainty from the perspective of theoretical foundations and experimental research. For this purpose, using the statistical method of principal components analysis, among several criteria, a suitable criterion is selected for each component of environmental uncertainty, and in the next step, by weighting each component, the degree of environmental uncertainty of each company is measured. Then the effect of this variable is tested with the fluctuation of financial characteristics of companies. In this regard, the data of 131 companies were extracted, and multivariate regression analysis was used to test the research hypotheses. The obtained results show that with the increase of environmental uncertainty, the fluctuation of profitability, fluctuation of cash and fluctuation of debt cost of companies increases. Because in the conditions of environmental uncertainty, companies face challenges in accurately predicting demand, pricing and future costs, which can affect their profit margins, cash holdings and debt costs. In addition, the increase in environmental uncertainty has no significant relationship with the increase in the fluctuation of stock returns, the fluctuation of financial leverage, and the fluctuation of dividends paid by companies. Manuscript profile

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30 - The Relationship between Financial Leverage Replacement Use in Financial Structure and Tax Avoidance
محمد حسین ستایش فهیمه ابراهیمی

Companies need financial resources to grow and managers need to make important decisions about utilizing various financial resources and the appropriate capital structure that maximizes shareholder value. Against this backdrop, the present research aims to examine the r More

Companies need financial resources to grow and managers need to make important decisions about utilizing various financial resources and the appropriate capital structure that maximizes shareholder value. Against this backdrop, the present research aims to examine the relationship between financial leverage replacement use in capital structure and tax avoidance in companies listed in the Tehran Stock Exchange. In doing so, we used a sample of 1026 observations. The statistical model used for testing the hypotheses in this research is panel data. The results of testing the first hypothesis reveal a negative, significant relationship between the financial leverage use and tax avoidance which is according to the effect of financial leverage replacement. The result of testing the second hypothesis reveal that the effect of financial leverage cost on the relationship between financial leverage use and tax avoidance is significant. Analysis of the effect of control variables indicates that company size, and growth opportunities have significant positive and profitability, dividend and collateral have significant negative effects on financial leverage use.   Manuscript profile

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31 - the Reason of Different Capital Structure in Iran in Comparison with Asia Pacific Countries
Rassol Naeempoor ALI Nemati Maasomeh Alavi

Investment structure of companies (financial leverage), doubtlessly, has a significant role to make decision for investment. The studies show that there is a relation between investment structure (financial leverage) and other factors such as rate of return of assets, p More

Investment structure of companies (financial leverage), doubtlessly, has a significant role to make decision for investment. The studies show that there is a relation between investment structure (financial leverage) and other factors such as rate of return of assets, profit of shares, changes of profit, profit division percent, size of company, and capital market value than value volume of the rights of share holders. The target to consider investment market is to define the structure of financial resources in order to maximize wealth of share holders. Theoretical framework of this research and also other researches is an appropriate database for such this purpose. There is no doubt that there will be a lot of problems in practice because the investment of shareholders is affected by too many factors among which we can mention investment structure (financial leverage).So financial managers of companies pay their attention to the effects of various methods to provide financial resources and evaluate the effect of different financial structures on investment of share holders. The aim of this research is to consider defining factors and the relation between investment structure and above-mentioned factors in the companies which are accepted in Tehran Stock Exchange Market. According to this target, we have ed 88 companies among the statistical society which provide our required data for an 8-year period of research (2002 to 2009). "Compound Regression" method is used to test research theories and "Significant Test Patterns" is done by F and t parameters.  Manuscript profile

Open Access Article

32 - The Effect of Financing Policies on the Agency Cost
Hosein Jabbari Halimeh Rahmani Mohammadali Vafapor

In this study ,we provided survey the effect of financing policies on the agency cost in the stock exchange market of Tehran. Agency relation is an agreement, according that owner elect the person and give option to him for deicide firm's operating activity. After agenc More

In this study ,we provided survey the effect of financing policies on the agency cost in the stock exchange market of Tehran. Agency relation is an agreement, according that owner elect the person and give option to him for deicide firm's operating activity. After agency agreement, agency cost raised because of conflict interests between both of the agreement parties. Agency cost has inversing effect on the firm. Therefore the firm looks for controlling and reduce the agency cost. In this research, we defined "Q Tobin "Index to measure the agency cost. This study is applied research and its purpose is surveying the relation between financial leverage, cash dividend and debt ratio of firm's on agency cost. The society of this study is consisted of all active firms in Tehran stock exchange in duration,(1384-1388). After systematic sampling, we collecting 186 firms. In order to test the correlation between the variables, Pearson Correlation Coefficient is used. Also the result of Durbin Watson test is 1. 822 and it means that there is not first order serial and on totality can reliance to results. The results show that there is no relation between financial leverage and agency cost. Also the findings show positive relation between cash dividend and agency cost. Finally the result show negative relation between debt ratio and agency cost Manuscript profile

Open Access Article

33 - The Effect of Income Smoothing and Earnings Quality on Financial performance of Firms
zeinab ariamand seyyed abbas ebrahimi

Profit smoothing can be seen as a deliberate reduction in profit fluctuations, so that the activities of the company appear to be normal. Managers are making profit smoothing to reduce this volatility. Some experts believe that investors are more willing to invest in sm More

Profit smoothing can be seen as a deliberate reduction in profit fluctuations, so that the activities of the company appear to be normal. Managers are making profit smoothing to reduce this volatility. Some experts believe that investors are more willing to invest in smoothing companies and are willing to pay more for them. Researchers believe that some of the characteristics of the company influence the motivation of managers to smooth profits. This study attempts to explain the theoretical foundations of the research, the relationship between earnings smoothing and company characteristics such as earnings quality, P/E and ROE and ROTA. Check the securities. In order to investigate the relationship between earnings smoothing and firm characteristics, data related to the period 2010-2017 were collected and analyzed. Logistic regression was used to test the research hypotheses. The results show that companies with higher price to earnings (P/E) ratios have more incentive to report earnings. And companies with higher earnings quality are more motivated to report earnings smoothly. Finally, it was found that larger ROTAs had a greater incentive to report earnings. Manuscript profile

Open Access Article

34 - Investigating the effects of institutional ownership provinces on financial leverage and dividend policy in companies listed on the Tehran Stock Exchange
mehrdad rafizadeh hamidreza kordlouie Mohsen Hashemighohar Shadi Shahverdiani

Institutional ownership is one of the corporate governance mechanisms, not only because of its expertise and knowledge, they have a better supervisory role over managers, which can also be effective in aligning important company decisions with their own interests. The m More

Institutional ownership is one of the corporate governance mechanisms, not only because of its expertise and knowledge, they have a better supervisory role over managers, which can also be effective in aligning important company decisions with their own interests. The main question of the research is how institutional shareholders in terms of ownership thresholds influence managers' decisions regarding financial leverage and dividends paid. In the present study, 143 companies have been selected in the period 2013-2019. The research findings show that the impact of the institutional shareholder on the financial leverage is the result of two values of institutional ownership thresholds and as a result three different behavioral regimes for the financial leverage. In the first and second behavioral regimes, institutional ownership has a negative and significant effect on financial leverage, which intensifies with increasing ownership; However, in the amount of institutional ownership above the second threshold, In relation to the effect of institutional ownership on dividends paid, a threshold value has been identified that in both regimes, the effect of institutional ownership on dividends paid is positive and significant, but in high values of the threshold amount, the impact factor shows a significant increase. Manuscript profile

Open Access Article

35 - analysis of regime dependent effects of financial leverage on firms Financial Vulnerability
evaz kenarkoohi Sayed Yahya Abtahi hamid khajeh mahmoodabadi gholamreza askarzadeh

Financial leverage is predicted as one of the main factors in dealing with the cause of firms' financial vulnerability. In this article, the effect of financial leverage on the financial vulnerability of firms has been studied by using the the regime-dependent approach More

Financial leverage is predicted as one of the main factors in dealing with the cause of firms' financial vulnerability. In this article, the effect of financial leverage on the financial vulnerability of firms has been studied by using the the regime-dependent approach through the estimation of a threshold model. The estimation results of a two-threshold model in a sample including data related to 145 non-financial and non-banking firms admitted to the Tehran Stock Exchange during 2010-2019 show that the effect of financial leverage on the vulnerability of firms has a vulnerability regime-dependent effects. Moreover, such an effect is even asymmetric because the negative effect of financial leverage on the vulnerability of firms in low vulnerability regimes is greater than their positive effect in high vulnerability regimes. Based on this, in using debt instruments in financing, it is necessary for firms to consider their initial situation in terms of financial vulnerability, because their financial health and performance in using financial leverage depends on the their vulnerability regime Manuscript profile

Open Access Article

36 - Investigating the Effect of Managerial Ownership Thresholds on Capital Structure and Dividend Policy in Companies on The Tehran Stock Exchange
mehrdad rafizadeh hamidreza kordlouie Mohsen Hashemighohar Shadi Shahverdiani

Representation theory refers to managers' equity, financial leverage, and dividends as tools used to reduce the agency dilemma. Ownership of managers, although it causes their interests to align with shareholders, but on the other hand also leads to the fortification of More

Representation theory refers to managers' equity, financial leverage, and dividends as tools used to reduce the agency dilemma. Ownership of managers, although it causes their interests to align with shareholders, but on the other hand also leads to the fortification of managers or their conservative behavior. In fact, managers with different levels of ownership act differently in other financial decisions such as the use of financial leverage and dividends. The aim of the present study is to find out the effect of managers' shareholding thresholds, in which their behavior in dividend and financial leverage decisions differs before and after. In this study,143 companies have been selected in the period 1392-1392. The research findings show that the effect of managers' ownership on financial leverage is based on two values of ownership thresholds and consequently three different behavioral regimes for financial leverage.In the first and second behavioral regimes, managerial ownership has positive and significant effects on financial leverage. Regarding the effect of managerial ownership on dividends paid, a threshold value has been identified that in both regimes, the effect of managerial ownership on dividends paid is positive and significant, but in high values of thresholds, the effect coefficient shows a significant increase. Manuscript profile

Open Access Article

37 - The effect of financial leverage on the Company's operating liquidity (within the model GOEL)
kamran karimi Shadi Shahverdiani Afsaneh Naeemifar

The main aim of the present study is to examine the effect of financial leverage on operating liquidity in listed companies of Tehran Stock Exchange. Statistical population of the present study is consisted of companies listed on Tehran Stock Exchange during the time pe More

The main aim of the present study is to examine the effect of financial leverage on operating liquidity in listed companies of Tehran Stock Exchange. Statistical population of the present study is consisted of companies listed on Tehran Stock Exchange during the time period of 2008 to 2014 and sample volume is equal to 118 companies by using screening method and after the elimination of outlaying observations. In this study, financial leverage was taken as independent variable in order to study its effect on current ratio, cash flow conversion cycle margin of the operational cash flow and return on assets. In this study, in which panel data with fixed and random effects were used, results obtained from firm data analysis by using multivariate regression at 95% confidence level indicated that financial leverage has a direct effect on return on assets. It was also indicated that financial leverage has a reverse effect on current ratio and cash flow conversion cycle. In addition financial leverage did not affect on the margin of the operational cash flow. Manuscript profile

Open Access Article

38 - Investigating the contrarian trading strategy performance in the Tehran stock exchange based on the firm's risk criteria
Ebrahim Qashqai Allah Karam Salehi ali mahmoodirad

10.30495/afi.2023.1972605.1172

Purpose: In traditional financial theory, the efficient market hypothesis states that market efficiency prevails in every stock exchange. However, evidence of market anomalies such as momentum effect and reversal effect exists. The aim of this study is to examine the pe More

Purpose: In traditional financial theory, the efficient market hypothesis states that market efficiency prevails in every stock exchange. However, evidence of market anomalies such as momentum effect and reversal effect exists. The aim of this study is to examine the performance of the reverse trading strategy under risk measures. To achieve this objective, four hypotheses were proposed.Methodology: This research employs a descriptive correlational method. The population of the study consists of all listed companies in the Tehran Stock Exchange during the period from 2013 to 2020. A systematic sampling technique was used to select a sample of 118 companies. Reverse profit is considered as the dependent variable, while systematic risk, liquidity risk, credit risk, and financial leverage are considered as explanatory variables.Findings: The findings indicate that systematic risk has a positive effect on reverse profit in all holding and formation periods. Liquidity risk does not have a significant impact on reverse profit. Credit risk and financial leverage have a positive effect on reverse profit. Furthermore, the results show that the influence of systematic risk, credit risk, and financial leverage on reverse profit is greater in the 24-month period compared to the 12-month and 36-month periods.Originality / Value: The results of this study provide valuable insights for portfolio investors and managers to consider company risks when investing through the reverse trading strategy. Additionally, market participants should focus on high levels of systematic risk, credit risk, and financial leverage when utilizing the reverse trading strategy, as these risk dimensions present opportunities for them to achieve extraordinary returns. Manuscript profile

Open Access Article

39 - The Effect of Political Relevance on the Rate of Adjustment of Financial Leverage in Listed Companies of Tehran Stock Exchange
Negar Baygan Seyed Mahmoud Mousavi Shiri

Objective: The main purpose of this study is to investigate the effect of political communication on the speed of adjustment of financial leverage . Method: In order to achieve the research objectives, a sample of 130 listed companies in the stock exchange that were se More

Objective: The main purpose of this study is to investigate the effect of political communication on the speed of adjustment of financial leverage . Method: In order to achieve the research objectives, a sample of 130 listed companies in the stock exchange that were selected according to systematic exclusion pattern was collected for a 7-year period from 2016 to 2022. To test the research hypotheses, a linear multivariate regression model was used. Findings: testing the research hypotheses¬showed that the financial leverage of the firm depends on the speed of its adjustment during its periods, but political communication does not affect the speed of adjustment of the financial leverage. Conclusion:Current research provided evidence that the political relations of managers could not¬ help them¬to develop financial leverage. Manuscript profile

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