Relationship between Financial Flexibility and Capital Structure

This study examines the impact of financial flexibility on firms' capital structure for the firms accepted in Tehran Stock Exchange for the period of 1378 to 1386. The financial flexibility is defined by the stages in life cycle including birth, growth and maturity, and data analysis is perform...

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Autores principales:	Hamid Haghighat, Vahab Bashiri
Formato:	article
Lenguaje:	FA
Publicado:	Shahid Bahonar University of Kerman 2012
Materias:	financial flexibility tradeoff theory pecking order theory Accounting. Bookkeeping HF5601-5689
Acceso en línea:	https://doaj.org/article/4f253a613349431cb1e98057eff9511f
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id	oai:doaj.org-article:4f253a613349431cb1e98057eff9511f
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spelling	oai:doaj.org-article:4f253a613349431cb1e98057eff9511f2021-11-04T19:42:04ZRelationship between Financial Flexibility and Capital Structure2008-89142476-292X10.22103/jak.2012.3https://doaj.org/article/4f253a613349431cb1e98057eff9511f2012-05-01T00:00:00Zhttps://jak.uk.ac.ir/article_3_2dff8ed7fcd9afeb37c8d2a779712332.pdfhttps://doaj.org/toc/2008-8914https://doaj.org/toc/2476-292XThis study examines the impact of financial flexibility on firms' capital structure for the firms accepted in Tehran Stock Exchange for the period of 1378 to 1386. The financial flexibility is defined by the stages in life cycle including birth, growth and maturity, and data analysis is performed by multiple regression method. The results show that rising firms issue equity and safe debt and maintain moderate leverage ratios. Firms in growing stage use debt financing mechanism and maintain high leverage ratios, and firms in mature stage rely on internal equity and maintain lower leverage ratios. The results of this research are consistent with the trade off theory, but not with the pecking order theory in the field of developing firms.Hamid HaghighatVahab BashiriShahid Bahonar University of Kermanarticlefinancial flexibilitytradeoff theorypecking order theoryAccounting. BookkeepingHF5601-5689FAمجله دانش حسابداری, Vol 3, Iss 8, Pp 49-71 (2012)
institution	DOAJ
collection	DOAJ
language	FA
topic	financial flexibility tradeoff theory pecking order theory Accounting. Bookkeeping HF5601-5689
spellingShingle	financial flexibility tradeoff theory pecking order theory Accounting. Bookkeeping HF5601-5689 Hamid Haghighat Vahab Bashiri Relationship between Financial Flexibility and Capital Structure
description	This study examines the impact of financial flexibility on firms' capital structure for the firms accepted in Tehran Stock Exchange for the period of 1378 to 1386. The financial flexibility is defined by the stages in life cycle including birth, growth and maturity, and data analysis is performed by multiple regression method. The results show that rising firms issue equity and safe debt and maintain moderate leverage ratios. Firms in growing stage use debt financing mechanism and maintain high leverage ratios, and firms in mature stage rely on internal equity and maintain lower leverage ratios. The results of this research are consistent with the trade off theory, but not with the pecking order theory in the field of developing firms.
format	article
author	Hamid Haghighat Vahab Bashiri
author_facet	Hamid Haghighat Vahab Bashiri
author_sort	Hamid Haghighat
title	Relationship between Financial Flexibility and Capital Structure
title_short	Relationship between Financial Flexibility and Capital Structure
title_full	Relationship between Financial Flexibility and Capital Structure
title_fullStr	Relationship between Financial Flexibility and Capital Structure
title_full_unstemmed	Relationship between Financial Flexibility and Capital Structure
title_sort	relationship between financial flexibility and capital structure
publisher	Shahid Bahonar University of Kerman
publishDate	2012
url	https://doaj.org/article/4f253a613349431cb1e98057eff9511f
work_keys_str_mv	AT hamidhaghighat relationshipbetweenfinancialflexibilityandcapitalstructure AT vahabbashiri relationshipbetweenfinancialflexibilityandcapitalstructure
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Relationship between Financial Flexibility and Capital Structure

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