Effects of Entropy of Financial Statements on the Adjustment Speed of Capital Structure

The companies with low entropy of financial statements, due to lower information risk and investor confidence, have lower financing costs. These companies have more operational action in achieving optimal capital structure. The main objective of this research is to investigate the effects of entropy...

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Autores principales:	Amirhossein Taebi Noghondari (Ph.D), Masoud Sadeghi, Ali Taebi Noghondari
Formato:	article
Lenguaje:	FA
Publicado:	Shahid Bahonar University of Kerman 2018
Materias:	adjustment speed of capital structure entropy of financial statement continuous entropy of renyi continuous Accounting. Bookkeeping HF5601-5689
Acceso en línea:	https://doaj.org/article/ef3aa92ac33f4afa9d4c0d1b7b470581
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spelling	oai:doaj.org-article:ef3aa92ac33f4afa9d4c0d1b7b4705812021-11-04T19:54:11ZEffects of Entropy of Financial Statements on the Adjustment Speed of Capital Structure2008-89142476-292X10.22103/jak.2018.11603.2604https://doaj.org/article/ef3aa92ac33f4afa9d4c0d1b7b4705812018-10-01T00:00:00Zhttps://jak.uk.ac.ir/article_2081_b556975882554177b85abca6c0c76b56.pdfhttps://doaj.org/toc/2008-8914https://doaj.org/toc/2476-292XThe companies with low entropy of financial statements, due to lower information risk and investor confidence, have lower financing costs. These companies have more operational action in achieving optimal capital structure. The main objective of this research is to investigate the effects of entropy of financial statements on the adjustment speed of capital structure in the companies listed in the Tehran Stock Exchange, using the data of 154 companies in the period 2006 to 2016 (totally 1694 years-company). To test the hypotheses, the Generalized Method of Moments (GMM) was used. To estimate the adjustment speed of capital structure, the partial adjustment model was used, and to measure the entropy of financial statements, the entropy, the continuous entropy of Renyi and Shannon were applied. Findings indicated that the entropy factor of financial statements have inverse relationship with the speed of companies in reaching their optimal capital structure. The results showed that the rates of modification for the companies with high and low entropy are 59% and 72%, respectively.Amirhossein Taebi Noghondari (Ph.D)Masoud SadeghiAli Taebi NoghondariShahid Bahonar University of Kermanarticleadjustment speed of capital structureentropy of financial statementcontinuous entropy of renyicontinuousAccounting. BookkeepingHF5601-5689FAمجله دانش حسابداری, Vol 9, Iss 3, Pp 145-176 (2018)
institution	DOAJ
collection	DOAJ
language	FA
topic	adjustment speed of capital structure entropy of financial statement continuous entropy of renyi continuous Accounting. Bookkeeping HF5601-5689
spellingShingle	adjustment speed of capital structure entropy of financial statement continuous entropy of renyi continuous Accounting. Bookkeeping HF5601-5689 Amirhossein Taebi Noghondari (Ph.D) Masoud Sadeghi Ali Taebi Noghondari Effects of Entropy of Financial Statements on the Adjustment Speed of Capital Structure
description	The companies with low entropy of financial statements, due to lower information risk and investor confidence, have lower financing costs. These companies have more operational action in achieving optimal capital structure. The main objective of this research is to investigate the effects of entropy of financial statements on the adjustment speed of capital structure in the companies listed in the Tehran Stock Exchange, using the data of 154 companies in the period 2006 to 2016 (totally 1694 years-company). To test the hypotheses, the Generalized Method of Moments (GMM) was used. To estimate the adjustment speed of capital structure, the partial adjustment model was used, and to measure the entropy of financial statements, the entropy, the continuous entropy of Renyi and Shannon were applied. Findings indicated that the entropy factor of financial statements have inverse relationship with the speed of companies in reaching their optimal capital structure. The results showed that the rates of modification for the companies with high and low entropy are 59% and 72%, respectively.
format	article
author	Amirhossein Taebi Noghondari (Ph.D) Masoud Sadeghi Ali Taebi Noghondari
author_facet	Amirhossein Taebi Noghondari (Ph.D) Masoud Sadeghi Ali Taebi Noghondari
author_sort	Amirhossein Taebi Noghondari (Ph.D)
title	Effects of Entropy of Financial Statements on the Adjustment Speed of Capital Structure
title_short	Effects of Entropy of Financial Statements on the Adjustment Speed of Capital Structure
title_full	Effects of Entropy of Financial Statements on the Adjustment Speed of Capital Structure
title_fullStr	Effects of Entropy of Financial Statements on the Adjustment Speed of Capital Structure
title_full_unstemmed	Effects of Entropy of Financial Statements on the Adjustment Speed of Capital Structure
title_sort	effects of entropy of financial statements on the adjustment speed of capital structure
publisher	Shahid Bahonar University of Kerman
publishDate	2018
url	https://doaj.org/article/ef3aa92ac33f4afa9d4c0d1b7b470581
work_keys_str_mv	AT amirhosseintaebinoghondariphd effectsofentropyoffinancialstatementsontheadjustmentspeedofcapitalstructure AT masoudsadeghi effectsofentropyoffinancialstatementsontheadjustmentspeedofcapitalstructure AT alitaebinoghondari effectsofentropyoffinancialstatementsontheadjustmentspeedofcapitalstructure
_version_	1718444626106384384

Effects of Entropy of Financial Statements on the Adjustment Speed of Capital Structure

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