Determinants of Financial Structure of Iranian Companies Listed in Tehran Stock Exchange: A Structural Equation Modeling Approach
Volume 12, Issue 45, Summer 2012, Pages 75-98
Omid Pour Heidari, Nasrin Yousef Zadeh
Abstract This paper applies the structure equation modeling approach to investigate the determinants of financial structure of Iranian companies listed in Tehran Stock Exchange. In addition, this study tries to unravel the financial structure determinants relative impact. The period of this research is start from 1379 to end of 1386. This study uses a MIMIC model of structure equation modeling to examine the financial structure determinants. We examine the effect of seven firm factors, which are growth, collateral value of assets, profitability, volatility, firm size, and industry classification on the latent financial structure. With the financial structure measured simultaneously by the ratios of short-term debt, and long-term debt to the market value of equity, our results show that collateral value is the most important in financial structure determinaion, followed in order by, firm size, profitability, growth, volatility, and Industry classification. Moreover, we find that short-term debt is the most important proxy for financial structure.
A Survey of Sophisticated Capital Budgeting Techniques, Risk and Inflation Analysis in Long Term Projects
Volume 9, Issue 35, Winter 2010, Pages 37-56
Omid Pour Heidari, Esmaeil Akhlaghi Yazdinejad
Abstract This study is investigating the extent of using and effectiveness of sophisticated techniques and risk and inflation analyzing in evaluation of long term projects in Tehran Stock Exchange in 2006. To collect data for this research we designed a reliable and valid questionnaire. The result indicate that the managers of the companies in Tehran Stock Exchange are using the following techniques: net present value, profitability index, internal rate of return, and accounting rate of return in order to evaluate the long term projects. Also the results showed that in view of the above managers techniques based on inflation such as the method based on real value of cash flow have the most effectiveness in decision making for investment. Other results showed that the most important obstacles of using sophisticated capital budgeting techniques are not employing scientific and practical word force; and insufficient indexes and variants in the country to implement required calculations.