Effects of political communication on investment and Reducing financing constraints in Tehran Stock Exchange

Document Type : Original Article

Authors

1 1. Associate Prof., Accounting, Faculty of economy and management , Tarbiat Modares University, Tehran, Iran

2 2. MSc., Accounting, and member Department of Accounting Education Bureau CHABOKSAR area, Gilan, Iran

Abstract

Many companies in Iran despite efforts by the government to continue the privatization of state controls over the financial and operating policies they can be seen. And given that political connections play an important role in explaining investment behavior and financial status plays, Hence, this paper examines the effects of political communication on the investment behavior of firms and Financial resources is paid in the Tehran Stock Exchange. Therefore hypothesis of using financial data of 135 Iranian companies (38 political participation, political participation, 97) and for the period 1382 to 1390 with a panel regression model Eviews and Stata software was tested. The findings suggest that the relationship between the behavior of the firm's investment policy is effective and Financial constraints have been reduced supply current. The practical implications of this research Financial managers use this information to adjust the financial and operating policies of the company is important. Iranian companies and investors to assess their financial situation and make decisions regarding their investments, is useful.

Keywords

Accounting and Auditing Research
Volume 9, Issue 34
July 2017
Pages 4-23

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