Surveying the Relation between Financing Methods and Future Stock Return
One of the most important fields of management decision making that has important effect on the wealth of stockholders is financing methods of the firm. Companies need financial resources for their current operation & future growth. For financing, companies usually face some limitations; therefo...
| Main Authors: | , |
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| Format: | Article |
| Language: | fas |
| Published: |
Allameh Tabataba'i University Press
2010-03-01
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| Series: | مطالعات تجربی حسابداری مالی |
| Subjects: | |
| Online Access: | https://qjma.atu.ac.ir/article_4311_31b38bb196d331bdfb474c5dc067ef63.pdf |
| Summary: | One of the most important fields of management decision making that has important effect on the wealth of stockholders is financing methods of the firm. Companies need financial resources for their current operation & future growth. For financing, companies usually face some limitations; therefore company should use its current funds in a way that creates value for both investors & company.
This research intends to investigate whether companies financing methods have an impact on their future returns or not.
We examined 111 firms over the period 1381-1385 selected from Tehran stock exchange.
This research is an empirical study, which investigates the relation between accounting and financial variables by using regression method & Pearson’s correlation coefficient. The methodology of this research is post event study.
Results indicate that there is reverse relation between cash flows from financing activities (cash flows form borrowing) and future stock return. We also find that there is no significant relation between cash flows from issuing bonds and the future stock return.
Overall, the results show that companies were not successful in generating return for their stockholders by using different financing methods. |
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| ISSN: | 2821-0166 2538-2519 |