The effect of micro economic factors on cash flows of listed companies in Tehran stock market

Azin Kavehpour, Masoomeh Shojaee, Abu Torab Alirezaee

Abstract


The main purpose of this research is to investigate the effect of the micro economic factors on cash flows of listed companies in Tehran stock market. In this research power of the market , adequacy of capital, provision of loan losses and credits of the mature and the age of banks, size of the bank were independent variables and their effect on cash flow of the banks was examined. Statistical population includes all the accepted companies in the Tehran stock market between 2009 to 2015.  The final sample is 113 banks (78 bank-years). Current research is correlational in term of method and nature. This research is also posted facto and semi0 experimental. This research is inductive in terms of methodology and this means librarian methodology, web sites, articles in the inductive framework and data collection was used in the review of related literature in order to confirm or reject the hypothesis in the induction framework. In this research panel data with fixed effects were used, data analysis using multi-variant regression with the confidence of 95% showed that power of market and adequacy of capital have a positive straight effect on the cash flow of banks. Result also indicates the provision of loan losses and credit of the previous maturity has a reverse (negative) effect on the cash flow o banks.

Keywords


Power of bank market, microeconomics variables, cash flow of banks

Full Text:

PDF

References


. Almajali, Amal Yassin, Sameer Ahmed Alamro, and Yahya Zakarea Al-Soub. "Factors affecting the financial performance of Jordanian insurance companies listed at Amman Stock Exchange." Journal of Management Research 4.2 (2012): 266.

. Hunger, J. David, and Thomas L. Wheelen. Essentials of strategic management. New Jersey: Prentice Hall, 2003.

. Sealey, Calvin W., and James T. Lindley. "Inputs, outputs, and a theory of production and cost at depository financial institutions." The journal of finance 32.4 (1977): 1251-1266.

. Lounsbury, Michael. "Institutional transformation and status mobility: The professionalization of the field of finance." Academy of Management Journal 45.1 (2002): 255-266.

. Michalski, Grzegorz. "Planning optimal from the firm value creation perspective levels of operating cash investments." arXiv preprint arXiv:1301.3824 (2013).

. Vahlne, Jan-Erik, and Jan Johanson. "The internationalization process of the firm—a model of knowledge development and increasing foreign market commitments." International Business. Routledge, 2017. 145-154.

. D’Amato, Valeria, Gabriella Piscopo, and Maria Russolillo. "A FRAMEWORK FOR PRICING A MORTALITY DERIVATIVE: THE g-FORWARD CONTRACT." ACTUARIAL AND FINANCIAL MATHEMATICS CONFERENCE. 2011.

. Clarkson G, Jacobsen TE, Batcheller AL, 2007. Information asymmetry and information sharing. Government Information Quarterly. 24: 827-839.

. Hollister, J., Vagnozzi, A., Knowles, N.J. and Rieder, E. (2008). Molecular and phylogenetic analyses of bovine rhinovirus type 2 show it is closely related to foot‐and‐mouth disease virus. Virology 373: 411‐425.

. Roy, Jewel Kumar. "Non-Performing Loan on Profitability: Evidence from Banking Sector of Dhaka Stock Exchange." (2015).

. Lashgari, Zahra, and Mousa Ahmadi. "The Impact of Dividend Policy on Stock Price Volatility in the Tehran Stock Exchange." Kuwait Chapter of the Arabian Journal of Business and Management Review 3.10 (2014): 273.

. Mutl, Jan, and Michael Pfaffermayr. "The Hausman test in a Cliff and Ord panel model." The Econometrics Journal 14.1 (2011): 48-76.

. m, K. S., Pesaran, M. H., Shin, Y.(1997). Testing for Unit Roots in Heterogeneous Panels, University of Cambridge, Department of Applied Economics

. Levin, A., Lin, C. F.(1992). Unit Root Tests in Panel Data: Asymptotic and Finite Sample Properties.Department of Economics, University of California at San Diego,Working Paper 92-23.

. OKRIASHVILI T.G., The State of Private Law in the Modern Legal Society, Astra Salvensis, Supplement No. 2, 2017, p. 539.

. ALEKSEEVA E.M., CHERNOV A.V., Implicit Features of Associating Life Situations with Mental States, Astra Salvensis, Supplement No. 2, 2017, p. 619.


Refbacks

  • There are currently no refbacks.




Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

Revista Publicando.

Licencia de Creative Commons

 

This Content is available under licencia de Creative Commons Reconocimiento-NoComercial-CompartirIgual 4.0 Internacional.