Farhad koohkan; Mohammad Reza Shoorvarzi; Abolghasem Masih Abadi; Aliraza Mehrazin
Abstract
The purpose of this study was to investigate the effect of investors' mental accounting on financing policies of companies admitted to Tehran Stock Exchange. Statistical population was including of 14 top investment companies and their apposite invest taker companies (109 companies) during 2011-2017. ...
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The purpose of this study was to investigate the effect of investors' mental accounting on financing policies of companies admitted to Tehran Stock Exchange. Statistical population was including of 14 top investment companies and their apposite invest taker companies (109 companies) during 2011-2017. In this study, variables of financial leverage, cash dividend, debt ratio, debt maturity and long-term debt to equity ratio were used as indicators of financing policies and panel data model with fixed effects method was used for data analysis. The results showed that investigated investment companies exhibited subjective accounting behavior in 34.69% of cases. In addition, investors' mental accounting also has an adverse effect on financial leverage, cash dividend and direct effect on debt ratio, debt maturity and long-term equity debt. The findings can provide valuable insights for managers to achieve optimal financing levels and play an important role in economic growth.
