Presenting the Proposed Model of Capital Increase Considering Iran's Economic Environment

Document Type : Research Paper

Authors

1 PhD student, Islamic Azad University, Zahedan Branch, Sistan and Baluchistan, Iran

2 Assistant Professor of Accounting Department, University of Sistan and Baluchestan, Zahedan, Iran,(Corresponding author;

3 Assistant Professor, Department of Accounting, Faculty of Management and Economics, Sistan and Baluchestan University, Iran

4 Assistant Professor, Department of Accounting, Islamic Azad University of Sistan and Baluchistan Branch, Zahedan, Iran

10.22051/jaasci.2023.42746.1751

Abstract

Purpose: One of the important and fundamental things to create a business is capital and financial resources. Lack of capital and lack of access to financial resources are among the biggest problems faced by companies. Decisions related to financing and, as a result, capital raising, always affect the wealth of shareholders. Considering the importance of the subject, in the present research, the model of capital raising in Iran's economic conditions is presented.
   Method: The current research is based on the practical purpose and the qualitative data type of the exploratory type based on the context-based approach, which includes interviews with 12 professional experts, including managers and university professors, based on practical experiences, with a general analysis of three stages of coding based on data (open, central and selective), the components of capital raising were identified according to Iran's economic environment.
   Findings: Factors causing capital raising including legal requirements, corporate diversification, structural factors, shareholding structure and tax system, background factors including financing system, government economy, laws and regulations, economic-political conditions and accounting system, intervention conditions including bureaucratic operations, legal restrictions and managerial decisions, strategies including budget resources, information quality, supportive policies, free economy, reforming structures and the culturing issue and its consequences including creating knowledge-based job opportunities, increasing social welfare, improving profitability, financial pressure for shareholders, loss of creditor advantage due to the inflation in society.
   Conclusion: The results of the research show the optimal management of the sufficient financial resources and the creation of the effective mechanisms for the possibility of investment, which is a factor for production, employment and moving the economic wheels of the country, and on the other hand, paying attention to the categories presented in the research model can greatly help the development of the economic activities of the companies and as a result, the dynamics and revival of the companies.
   Knowledge Enhancement: It is expected that the results of the research can expand and enrich the theoretical foundations of the literature related to capital raising and help managers in creating and re-creating the components of the capital raising.

Keywords

Main Subjects

References

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Journal of Accounting and Social Interests
Volume 13, Issue 3 - Serial Number 50
November 2023
Pages 143-184

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History

  • Receive Date: 28 January 2023
  • Revise Date: 21 August 2023
  • Accept Date: 26 August 2023

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