Investigating Factors Affecting Debt Policies of Companies Accepted in Tehran Stock Exchange

Document Type : Original Article

Authors

1 Islamic Azad University, Qazvin Branch, Department of Management and Accounting, Qazvin, Iran

2 Department of Financial Management, Qazvin Branch, Islamic Azad University, Qazvin, Iran(Corresponding Author)t

Abstract

Financial strength has always been, one of the influencing factors for the success of companies, and undoubtedly the company's capital structure, plays a key role in this context. Therefore, Capital structure and the influencing factors are the issues of interest for the researchers, especially in providing of finance. This study evaluated the impact of initial debt policy on Future debt policy, in the companies listed on Tehran Stock Exchange for the period of 2001 to 2015. In the following, along with the assessment the impact of particular Company’s factors on liabilities policy, this question is going to be answered that whether Chief Executive Office departure has effect on their liabilities policy? This research has the practical goal and the results of it are ex-post. With Systematic elimination, 115 cooperation companies have been chosen as a sample, and by the help of field study, the required data have been gathered.To analyze data and to assess relationships between variables, multivariate linear regression model and Statistical methods of panel data were used. The first hypothesis test results, show that the impact of initial liabilities policy on future liabilities policy is not significant. In the second hypothesis particular factors affecting on the company's liabilities policy examined and the results show the importance of the particular factors effects, on the company's liabilities policy. Based on test results in the third hypothesis, we come to this conclusion that the Chief Executive Office departure has no significant impact on corporate liabilities policy.

Keywords

References

  1. Assadi, GH., Bayat, M. & Naghdi, S. (2014). Financial and Non-financial Factors Effective on Capital Structure Decisions. Journal of Empirical Research in Accounting, 4(2), 187-203 (In Persian).
  2. Assadi, GH & Jalalian, R. (2012). The Investigation of Impact of Capital Structure, Ownership Structure and Firm Size on Conservatism. Journal of the Accounting and Auditing Review, 19, 1-14 (In Persian).
  3. Assadi, GH., Khoshnoud, S & Davaloo, M. (2011). Review of Factors Affecting on Entities Financial Structure, Financial Management Perspective, 1(4), 9-23 (In Persian).
  4. Bertrand, M & Schoar, A. (2003). Managing with style: the effects of managers on firm policies. Quarterly Journal of Economics, 118(4), 1169-1208.
  5. Boeker, W. (1989). Strategic change: the effects of founding and history. Academy of Management Journal, 32(3), 489-515.
  6. Choi, J., Hackbarth, D & Zechner, J., (2014). Granularity of corporate debt. Working Paper. Retrieved from http://papers.ssrn.com/sol3/papers.cfm?=3055884.
  7. Ebrahimi, K., Jalali, f & Ghorbaninigjeh, M. (2015). Investigating the Effect of Tax Aggressive Policies and Debt Policies in Tehran Stock Exchange. Third International Accounting and Management Conference, Tehran, Hamayeshgharan Mehr Eshragh Institue, Retrieved from https://www.civilica.com/paper-MOCOF03-MOCOF03_340html.
  8. Fathi, S., Googerdchian, A & Behzadi, A. (2018). Investing the Effect of Financial Flexibility Value on the Financial Policies and the Capital Cost of corporate using Gamba and Triantis Model, Financial Management Perspective, 8(21), 29-50 (In Persian).
  9. Hajiha, Z & Akhlaghi, H. (2012). Investigating the Factors Affecting the Firms Maturity Structure. The Journal of Empirical Financial Accounting, 33, 147-167 (In Persian).
  10. Hanssens, J., Deloof, M & Vanacker, T. (2016).The Evolution of Debt Policies: New Evidence from Business Startups. Journal of Banking & Finance, 65, 120-133.
  11. Julio, B., Kim, V & Weisbach, M. (2007). What determines the structure of corporare debt Issues. Retrieved from http://www.nber.org/papers/w13706.
  12. Nazemi Ardakani, M & Zare, AH. (2016).Investing the Effect of Corporate Governance on Capital Structure Adjustment Speed using Generalized Method of Moments, Financial Management Perspective, 6(15), 43-59 (In Persian).
  13. Nouroziyangjeh, Sh & Badavarnahandi, Y. (2015). Investigating the Effect of Growth Opportunities, Debt ratio, Company age and Fixed Assets ratio on Conservative Financial Policy in Companies Admitted to Tehran Stock Exchange. Third International Management Conference, Economics and Accounting, Industrial organization of Industrial Representation of East Azarbaijan, Tabriz, Iran. Retrieved from https://www.civilica.com/Paper-NDMCONFT03-NDMCONFT03_130.html
  14. Schoar, A & Zuo, L. (2014). Shaped by booms and busts: how the economy impacts CEO careers and management styles. Retrieved from http://www.nber.org/papers/w17590.
  15. Stinchcombe, A.L. (1965). Social structures and organizations. Chicago: Handbook of organizations. 142-193.
  16. Sudiyatno, B., Mustikasari, S. (2013). Determinants of debt policy: An empirical studying Indonesia stock exchange. Educational Research, 4(1), 98-108.
  17. Tariverdi, Y., Amraee, H & Mehdipoor Roshan, S. (2015). The Effect of Operating Profit, Financial Leverage and Size on the Liquidity of Companies Listed on the Tehran Stock Exchange, Financial Management Perspective, 5(11), 83-106 (In Persian).
  18. Tian, G.G & Zeitun, R. (2007). Capital Structure and CorporatePerformance. Australasian Accounting Business and Finance Jurnal, N4, P 40.
  19. Zanjirdar, M & Mohammadi, M. (2015). The Effect of Debt Policies on Companies Profit Sharing. First National Conference on Applied Accounting Research, Economics Management, Damghan Branch, Islamic Azad University, Damghan, Iran. Retrieved from https://www.civilica.com/Paper-NCARA01-NCARA01_143.html (In Persian).

Files

Share

How to cite

Statistics