Title of article
A Study of Financing Decisions and Capital Structure in Real Investment
Author/Authors
Aghajan Nashtaei, Reza Department of Business Management - Rasht Branch - Islamic Azad University , Chirani, Ebrahim Department of Business Management - Rasht Branch - Islamic Azad University , Goudarzvand Chegini, Mehrdad Department of Business Management - Rasht Branch - Islamic Azad University
Pages
9
From page
57
To page
65
Abstract
In real investment, there is a relationship between external
financing and abnormal stock returns. This study predicts a negative
correlation between external financing and stock returns. The
dependent variable of the research is stock returns and the independent
variables are net financing and equity ratio. Also, control variables
of the research include assets growth, company’s size and
company’s age. In this research, the hypotheses have been tested
using the financial statements of 178 industrial companies accepted
in Tehran Stock Exchange over the 2012-2016 period and also
regression models with panel data. The results indicate a positive
correlation between external financing, in both net and composition
cases, with abnormal stock returns and also a negative correlation
between external financing –again in both net and composition
cases- with abnormal stock returns in the stock model. In addition,
when we use net and composition financing simultaneously, there
is not a significant relationship between net and composition financing
and abnormal stock returns.
Keywords
External Financing , Real Investment Theory , Pricing Model
Journal title
Astroparticle Physics
Serial Year
2019
Record number
2436311
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