international journal of business management
The Effect of Economic System Financial Shock on the Financing Policies of Listed Companies in Tehran Stock Exchang
Akbar Ghaffarlou, Ebrahim Chirani
One of the most important economic issues of today's world is the global economic crisis and its impacts on the economies of different countries. Sanctions imposed on Iran's economy since 2011 have caused economic shock. The macroeconomic policies during an economic shock are considered as one of the macroeconomic factors of companies. This study was conducted with the aim of evaluating the effect of financial shocks on financing policies of listed companies in Tehran Stock Exchange. For this purpose, a sample of 128 listed companies in Tehran Stock Exchange during a 6-year period (2008 to 2013) was selected and examined using systematic knockout method. ANOVA and correlation coefficient were used for analyzing the data and all stages were performed using EVIEWS statistical software. The results revealed that financial shocks reduced investors' confidence in the capital market and, accordingly, companies suffered from the problems of long-term financing of the company and could not finance capital through the sale of shares in the capital market. Thus, the financial shock of the economic system had a significant effect on long-term, short-term, and total financing of listed companies in Stock Exchange.