Investment and Financing Constraints in Iran
International Journal of Economics, Finance and Management Sciences
Volume 1, Issue 5, October 2013, Pages: 252-257
Received: Aug. 10, 2013; Published: Sep. 30, 2013
Views 3279      Downloads 150
Hossein Hossein, Department of accountancy, Azad University of Gazvin, Gazvin baragin, Iran
Fatemeh Baghiyan, Department of accountancy, Azad University of Gazvin, Gazvin baragin, Iran
Article Tools
Follow on us
Since the level of fixed investment is costly for firms, they always search for ways to maintain it; however, financing constraints prevent the realization of this goal. In this article, a panel of over 134 stock firms over the period 2005-2011 was used to study the linkages between investment in fixed and working capital and financing constraints. To this end we have analyzed the relation between investment, cash flow, tangible fixed assets, working capital, and fixed investment. The results obtained indicate that an active management of working capital may help firms alleviate the effects of financing constraints on fixed investment. Nevertheless, they did not examine the input of working capital management of the company.
Investment, Cash Flow, Tangible Fixed Assets, Fixed Investment, Working Capital Management
To cite this article
Hossein Hossein, Fatemeh Baghiyan, Investment and Financing Constraints in Iran, International Journal of Economics, Finance and Management Sciences. Vol. 1, No. 5, 2013, pp. 252-257. doi: 10.11648/j.ijefm.20130105.17
Sai, D., Alessandra, G., John, K., 2012. Investment and financing constraints in china, Journal of banking $ Finance 18, 1-18.
Allen, F., Qian,J., Qian, M., 2005. Law, finance,and economic growth in China, Journal of Financial Economics 77, 57–116.
Ayyagari, M., Demirgüç-Kunt, A., Maksimovic, V., 2010, Formal versus informal Finance: evidence from China.Review of Financial Studies 23, 3048–3097.
Chen, H., Chen, S., 2012, Investment – cash flow sensitivity cannot be a good Measure of financial constraints: evidence from time-series. Journal of Financial Economics 103, 393–410.
Guariglia, A., Liu, X., Song, L., 2011, internal finance and growth: microeconometric Evidence on Chinese firms, Journal of Development Economics 96 (1), 79–94.
Bernanke, B., Gurkanyan, R., 2001. Is Growth Exogenous? Taking Mankiw, Romer, and Weil Seriously, National Bureau of Economic Research Annual, MIT Press, and Cambridge, Massachusetts.
Bond, S., Schiantarelli, F., 2010, Capital accumulation and growth: a new look at Empirical evidence, Journal of Applied Econometrics 25, 1073–1099.
Ding, S., Knight, J., 2011, why has China grown so fast?"The role of physical and human capital formation, Oxford Bulletin of Economics and Statistics 73, 141–174.
Science Publishing Group
1 Rockefeller Plaza,
10th and 11th Floors,
New York, NY 10020
Tel: (001)347-983-5186