Investigating the Relationship between Financial Restrictions and Stock Returns and Risk in Corporations of Accepted in Tehran Stock Exchange

Authors

  • Samiran Khajehzadeh
  • Hossein Jabbary
  • Mehdi Madanchi Zaj

DOI:

https://doi.org/10.24200/jmas.vol6iss03pp40-44

Abstract

Objective: The financial restrictions are restrictions that prevented provide all the funds needed for favorable investment in the company. Return on equity is an important role in enabling managers to invest in the future. The main purpose of this study is investigating the Relationship between Financial Restrictions with Stock Returns and Risk (volatility returns), in Corporations of Accepted in Tehran Stock Exchange. Methodology: Statistical Population is consisted of 322 year – company in during of time 2009 – 2015. Results: By Using multivariate regression techniques with panel data and hypotheses were analyzed with the Eviews 8 software, the results indicate a significant and negative relationship between financial constraints and risk (volatility returns), and the absence of a significant relationship between financial and stock returns is limited. Conclusion: Other results showed that there is a positive and significant relationship between the company size and financial leverage and risk (returns volatility).

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Published

2020-09-29

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Section

Articles