Payame Noor University Economic Growth and Development Research 2228-5954 11 43 2021 06 22 The Impact of Investors' Mental Accounting on Financing Policies and Economic Growth from Financial Reporting Perspective The Impact of Investors' Mental Accounting on Financing Policies and Economic Growth from Financial Reporting Perspective 136 125 6794 10.30473/egdr.2019.48536.5395 FA Farhad Koohkan Ph.D. Student of Accounting, Neyshabur Branch, Islamic Azad University, Neyshabur, Iran Mohammad Reza Shoorvarzi .Associate Professor of Accounting, Department of Accounting, Neyshabur Branch , Islamic Azad University, Neyshabur, Iran. Abolghasem Masih Abadi Assistant Professor of Accounting, Sabzevar Branch, Islamic Azad University, sabzevar, Iran Aliraza Mehrazin Assistant Professor of Accounting, Neyshabur Branch, Islamic Azad University, Neyshabur, Iran Journal Article 2019 09 04 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. 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. https://egdr.journals.pnu.ac.ir/article_6794_d44883bb64afa6236aa872de9148ae0e.pdf