Investigating the Effects of Market Frictions on Financial Constraints with Emphasis on Political Connection

Q: How can I download an article?

To download an article from SID, first log in to the site, search for the article title, and click on the 'Download Article' option.

Q: How can I download an ISI article?

To download an ISI article on SID, enter the keyword or article title in the search bar, view the relevant results, click on the desired article, and select the 'Download Article' option.

Q: How can I access the SID database?

To access the SID database, visit SID.ir, create an account, and log in to access scientific resources.

Q: Is downloading articles from SID free?

Some articles on SID are available for free, while others require payment. Details are specified on the article's page.

AKHGAR MOHAMMAD OMID; Koranii Fatemeh

مرکز اطلاعات علمی Scientific Information Database (SID) - Trusted Source for Research and Academic Resources

Download Full-Text

Persian Verion

View:

347

Download:

Cites:

Information Journal Paper

Title

Investigating the Effects of Market Frictions on Financial Constraints with Emphasis on Political Connection

Author(s)

AKHGAR MOHAMMAD OMID | Koranii Fatemeh | Issue Writer Certificate

Keywords

Financial ConstraintsQ1

Market FrictionsQ1

Information AsymmetryQ2

Stock Trading IlliquidityQ1

Investor SentimentQ1

Political ConnectionsQ1

Abstract

This study investigate the effect of Market Frictions on Financial Constraints with emphasize on Political Connections and corporate governance. Based on Deng et, al (2017), factors of Market Frictions are Information Asymmetry, Stock Trading Illiquidity and Investor Sentiment. Spread model is used for calculating the Information Asymmetry, stock turnover rates is used as proxy for Stock Trading Illiquidity and Investor Sentiment. Also, WW index is used for calculating the Financial Constraints. In order conduct this study using the systematic sampling approach, 159 firms selected as a final sample during 2010-2017. In order to investigate the relationship between variables, multivariable OLS regression approach is used. For testing hypotheses we used Panel Data with Fixed Effects approach. The results show that there is a significant relationship between Market Frictions and Financial Constraints, namely Market Frictions increase the Financial Constraints. Existence of Political Connections increase the effect of Stock Trading Illiquidity and Investor Sentiment on Financial Constraints. Also, existence of Political Connections are effective means in the relationship between Information Asymmetry and Financial Constraints and decrease this effect. In fact, the effect of Political Connections on the relationship between Market Frictions and Financial Constraints depends on firms conditions.

Cites

No record.

References

No record.

Cite

APA: Copy

AKHGAR, MOHAMMAD OMID, & Koranii, Fatemeh. (2019). Investigating the Effects of Market Frictions on Financial Constraints with Emphasis on Political Connection. JOURNAL OF FINANCIAL ACCOUNTING RESEARCH, 11(2 (40) ), 17-37. SID. https://sid.ir/paper/392410/en

Vancouver: Copy

AKHGAR MOHAMMAD OMID, Koranii Fatemeh. Investigating the Effects of Market Frictions on Financial Constraints with Emphasis on Political Connection. JOURNAL OF FINANCIAL ACCOUNTING RESEARCH[Internet]. 2019;11(2 (40) ):17-37. Available from: https://sid.ir/paper/392410/en

IEEE: Copy

MOHAMMAD OMID AKHGAR, and Fatemeh Koranii, “Investigating the Effects of Market Frictions on Financial Constraints with Emphasis on Political Connection,” JOURNAL OF FINANCIAL ACCOUNTING RESEARCH, vol. 11, no. 2 (40) , pp. 17–37, 2019, [Online]. Available: https://sid.ir/paper/392410/en

Related Journal Papers

No record.

Related Seminar Papers

No record.

Related Plans

No record.

Recommended Workshops