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

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

اسدی، غلامحسین و پورباقریان، علیرضا. (1390). رابطه رویکردهای تأمین مالی با بازده آتی سهام. نشریه مطالعات حسابداری، 29، 139-153.
پیاله خانی، اعظم. (1400). بررسی افزایش سرمایه در شرکت­های بورسی، سومین کنفرانس ملی علوم انسانی و توسعه، شیراز.
خاکبازان، رضا. غریبی، مرتضی و ناطق، تهمینه. (1396). ارزیابی نقش روش­های تأمین مالی در موفقیت شرکت­های دانش بنیان، پایان­نامه کارشناسی ارشد دانشگاه آزاد واحد شاهرود.
داغانی، رضا. اعتمادی، حسین. عزیزخانی، مسعود. و انواری رستمی، علی اصغر. (1394). تصمیمات تأمین مالی و زمان­سنجی مدیریت. نشریه مدیریت دارایی و تأمین مالی، 3 (3)، 21-36.
دانایی­فرد، حسن و اسلامی، آذر. (1389). کاربرد نظریه داده بنیاد در عمل: ساخت نظریه بی­تفاوتی سازمان، تهران: انتشارات دانشگاه امام صادق (ع)، چاپ اول، ص 12.
رهنمای رودپشتی، فریدون. ناطق گلستان، احمد و یعقوب نژاد، احمد. (1394). ارائه الگوی ذهنی ادراک ریسک سرمایه­گذاران بورس اوراق تهران؛ نشریه دانش سرمایه­گذاری، 4 (13)، 195-216.
سلمانی­نژاد، رمضانعلی. آذر، عادل. مقبل باعرض، عباس و صالح­آبادی، علی. (1396). کاربرد روش­شناسی سیستم­های نرم در ساختاردهی به مسئله تأمین مالی از طریق بازار سرمایه ایران، پژوهش‌های مدیریت منابع سازمانی، 7 (1)، 65-88.
عزیزی، محمد و ملایجردی، مریم. (1396). روش­های تأمین مالی کارآفرینی اجتماعی. نشریه تحقیقات مالی، 1 (1)، 119-138.
کردستانی، غلامرضا و نجفی عمران، مظاهر. (1389). تأثیر روشهای تأمین مالی بر بازده آتی سهام. نشریه پیشرفت­های  حسابداری، 2 (2)، 75-108.
گلعلی­زاده، محمدرضا. طباطبائیان، سید حبیب­اله و زمردیان، غلامرضا. (1400). شناسایی و دسته­بندی چالش­های تأمین مالی شرکت­های دانش بنیان در ایران، نشریه مدیریت نوآوری، 10 (4)، 1-27.
نکوئی، صادق. صالحی، مهدی و کامیابی، یحیی. (1393). شناسائی و بررسی دلایل عدم اعمال آثار تورم بر گزارشگـری مـالی در ایـران، نشریه دانش سرمایه­گذاری، 3 (11)، 65-98.
Abiodun Eniola, A., & Entebang, H. (2015). SME Firm Performance-Financial Innovation and Challenges. Social and Behavioral Sciences, World Conference on Technology, Innovation and Entrepreneurship, 195: 334-342.
Aghion, P., Bond, S., Klemm, A., & Marinescu, I. (2004). Technology and financial structure: Are innovative firms different? Journal of European Economic Association, 2: 277-288.
Aghion, P., Fally, T., Scarpetta, S. (2007). Credit constraints as a barrier to the entry and post-entry growth of firms. Economic Policy, 22(52), 732-779.
Alves, J. (2019). The impact of tax structure on investment: an empirical assessment for OECD countries. Public Sector Economics, 43(3), 291-309.
Andereea, Apostu. (2010). The Effect of Corporate Diversification Strategies on Capital structure. Aarhus School of Business, Aurhus University.
Ari, G.B. & Vonortas, N.S. (2007). Risk Financing for Knowledge-Based Enterprises: Mechanisms and Policy Options.
Asadi, Gholamhossein., Pourbagarian, Alireza. (2011). The relationship between financing approaches with future stock returns. Journal of Accounting Studies, 29, 139-153. (In Persian).
Azizi, Mohammad. & Malaijerdi, Maryam. (2017). Financing methods of social entrepreneurship. Journal of Financial Research, 1(1), 119-138. (In Persian).
Barlev, B., & Haddad, J. R. (2003). Fair value accounting and the management of the firm. Critical Perspectives on Accounting, 2354, 383-415.
Beck, T., & Demirguc-Kunt, A. (2006). Small and medium-size enterprises: Access to finance as a growth constraint. Journal of Banking & Finance, 30(11), 2931-2943.
Beck, T., Demirduc-Kunt, A. and Maksimovic, V. (2008). Financing patterns around the world: Are small firms different? Journal of Financial Economics, 89, 467-487.
Bellavitis, C., Filatotchev, I., Kamuriwo, D.S., & Vanacker, T. (2017). Entrepreneurial finance: new frontiers of research and practice. Venture Capital, 19(1-2): 1-16.
Berger, F., Waltner, D., & Vall, S. (1997). Managerial entrenchment and capital structure decisions. Journal of Finance, 52(4): 1411-1438.
Bortolotti, B., Fotak, V., & Wolfe, B. (2018). Innovation and State Owned Enterprises. BAFFI CAREFIN Centre Research Paper, 72.
Botosan, C. A., & Plumlee, M. A. (2002). A re‐examination of disclosure level and the expected cost of equity capital. Journal of Accounting Research,40(1), 21-40.
Bradshaw ،M. & Richardson، S. & Sloan،A. (2006).The relation between corporate financing activities, analysts forecasts and stock returns; Journal of accounting and economics, 14-27.
Brown, J.R. Choi, J.J. Coile, C. Woodbury, R. (2020). Social security and financial security at older ages. Social Security Bulletin, 80(1), 31-40.
Buhn, A., Karmann, A., Schneider, F. (2007). Size and Development of the Shadow Economy and of Do-It-Yourself Activities in Germany. Cesifo Working Paper.
Choi, H., & Suh, J. (2017). Investment financing: Evidence from korea. Accounting and Finance, 57 (S1), 147–184.
Christiano, L., Motto, R. and Rostango, M. (2010). Financial Factors in economic Fluctuation, Working Paper Series of European Central Bank, 1192.
Coad, A., & Guenther C. (2013). Processes of firm growth and diversification: Theory and evidence. Science and Technology Policy Research, 96, 222-247.
Core, J. E., Hail, L., & Verdi, R. S. (2015). Mandatory disclosure quality, inside ownership, and cost of capital. European Accounting Review, 24(1), 1-29.
Cowling, M., ghetto, E., & Lee, N. (2018). The innovation debt penalty: Cost of debt, loan default, and the effects of a public loan guarantee on high-tech firms. Technological Forecasting & Social Change, 127, 166-176.
Creswell, J. W. (2005). Educational Research: Planning, Conducting and Evaluating Quantitative and Qualitative Research, 2 nd Ed, Upper Saddle River, New Jersey, Merrill.
Cull, R., Li, W., Sun, B. & Xu, L.C. (2015). Government connections and financial constraints: evidence from a large representative sample of Chinese firms. Journal of Corporate Finance, 32 (1), 271-294.
Daghani, Reza. Etamadi, Hossein. Azizkhani, Masoud. & Anvari Rostami, Ali Asghar. (2015). Financing decisions and management timing. Journal of Asset Management and Financing, 3(3), 21-36. (In Persian).
Danaei Fard, Hassan. & Islami, Azar. (2010). The application of foundation data theory in practice: construction of organization indifference theory, Tehran: Imam Sadegh University Press, first edition, p. 12. (In Persian).
Deng, X., & Wang, Z. (2006). Ownership structure and financial distress: evidence from public-listed companies in China. International journal of management, 23(3), 486.
Dreßler, D., & Overesch, M. (2013). Investment impact of tax loss treatment-empirical insights from a panel of multinationals. International Tax and Public Finance, 20(3), 513-543.
Edwards, J., & O’Keefe, W. (1981). Financial reporting in an inflationary environment. Business Horizons, 24(4), 21-29.
Egger, P. and Winner, H. (2005). Evidence on Corruption as an Incentive for Foreign Direct Investment, European Journal of Political Economy, 21(4): 932-952.
Filipović, S. Petraković, D. (2005). SME sector development by improving financial support: Serbia compared to other see countries, South-Eastern Europe Journal of Economics, 2, 273-293.
Frank, M.Z. Goyal, V.K. (2003). Testing the pecking order theory of capital structure. Journal of Financial Economics, 67(2), 217-248.
Gilchrist, S. G., Zakrajsek, E. (2012). Credit Supply Shocks and Economic Activity in a Financial Accelerator Model in Rethinking the Financial Crisis Conference, Edited by Alan Blinder, Andrew Loand Robert Solow, Russell Sage Foundation.
Gokal, V., & Hanif, S., (2004). Relationship between inflation and economic growth. Working Paper.
Golalizadeh, Mohammad Reza. Tabatabaian, Seyyed Habibolah. & Zamardian, Gholamreza. (2021). Identification and classification of financing challenges of knowledge-based companies in Iran, Innovation Management Journal, 10 (4), 1-27. (In Persian).
Graham, J. R., & Leary, M. T. (2011). A Review of Empirical Capital Structure Research and Directions for the Future. Annual Review of Financial Economics, 3(1), 309–345.
Hall, B. (2010). The Financing of Innovative Firms. Review of Economics and Institutions, 1(1): 1- 30.
Hasan. A. Butt. S. A. (2009). Impact of ownership structure and corporate governance on capital structure of Pakistan listed companies. International Journal of Business and Management, 4(2): 50-57.
Huang, X., Kabir, R., & Zhang, L. (2018). Government ownership and the capital structure of firms: Analysis of an institutional context from China. China Journal of Accounting Research, 11(3), 171-185.
Jeng, L. Wells, P. (2000). The determinants of venture capital funding: evidence across countries, Journal of Corporate Finance, 6, 241-289.
Jones, Ariel Zetlin, Ali Shourideh. (2017). External Financing and the Role of Financial Frictions over the Business Cycle: Measurement and Theory. Journal of Monetary Economics (2017), 128.
Kahan, M., & Rock, E. (2010). When the Government Is the Controlling Shareholder: Implications for Delaware. Delaware Journal of Corporatre Law, 35, 409-436.
Karthik, D., Rejie, G. & Singla, C. (2015). International diversification and firm performance: The contingent influence of product diversification. Research and Publications, 52, 248-273.
Khakbazan, Reza. Gharibi, Morteza. Natiq, Tehmina. (2017). Evaluation of the role of financing methods in the success of knowledge-based companies, Master's thesis of Azad University, Shahrood branch. (In Persian).
Khan, S. (2015). Impact of sources of finance on the growth of SMEs: evidence from Pakistan. Decision, 42(1), 3-10.
Klonowski, D. (2007).Venture Capitalists’ Perspective on Corporate Governance in Transition Economies. Problems of Economic Transition, 49(8): 44-64.
Korajczyka, R. A. & Levy A. (2003). Capital structure choice: macroeconomic conditions and financial constraints, Journal of Financial Economics, 68(1), 75–109.
Kurdestani, Gholamreza. & Najafi Imran, Mazher. (2010). The effect of financing methods on future stock returns. Journal of Accounting Advances, 2 (2), 75-108. (In Persian).
Lee, W., & Wang, L. (2017). Do political connections affect stock price crash risk? Firm-level evidence from China. Review of Quantitative Finance and Accounting, 48 (3), 643-676.
López-Gutiérrez, Carlos. Sergio, Sanfilippo-Azofra. Begoña, Torre-Olmo. (2015). Investment decisions of companies in financial distress. BRQ Business Research Quarterly, 18 (3), 174-187.
Luo, P., Song, D., & Chen, B. (2020). Investment and financing for SMEs with bank-tax interaction and public-private partnerships. International Review of Economics & Finance, 65, 163-172.
Menla, A., F. & Dimitraki, O. (2014). Military spending and economic growth in China: a regime-switching analysis, Applied Economics, 46(28), 133-152.
Myers, S. C., & Majluf, N. S. (1984). Corporate Financing and Investment Decisions When Firms Have Information that Investors Do Not Have. Journal of Financial Economics, 13(2), 187–221.
Myers, S.C., & Majluf, N.S. (1984). Corporate Financing and Investment Decisions When Firms Have Information that Investors Do Not Have. Journal of Financial Economics, 13: 187–221.
Nassar, S., Ashour, M., Farukh, T. O. & Kulah, S. (2018). The effect of ownership structure on intellectual capital efficiency: Evidence from borsa Istanbul. 7th International Conference on Business Administration (ICBA).
Nekoei, Sadegh. Salehi, Mehdi. & Kamyabi, Yahya. (2014). Identifying and examining the reasons for not applying the effects of inflation on financial reporting in Iran, Investment Knowledge Journal, 3 (11), 65-98. (In Persian).
Niemann, R. (2011). The impact of tax uncertainty on irreversible investment. Review of Managerial Science, 5(1), 1-17.
Nieuwenburg, S. A. M. (2013). Ethically investing during the financial crisis (Doctoral dissertation, Master’s thesis, Tilburg University).
Odabashian, K. (2005). The effect of the leverage on opportunistic behavior and earnings management. Dissertation for the Degree of Doctor of Philosophy, University of Connecticut.
Oliver, J., Qu, W., & Wise, V. (2014). Corporate governance: a discussion on minority shareholder protection in China. International Journal of Economics and Finance, 6(3), 111-119.
Oyadijo, A. (2012). Effects of product-market diversification strategy on corporate financial performance and growth: An empirical study of some companies in Nigeria. American International Journal of Contemporary Research. 3(2), 199-210.
Paramasivan, C. Subramanian, T. (2008). Financial Management New Age International Publisher December 1.
Pashardes, P., Polycarpou, A. (2008). Income Tax Evasion, Inequality and Poverty. Cyprus Economic Policy Review, 2(2), 37-49.
Pirozhkova, E. (2013). Financial Frictions and Robust Monetary Policy in the Models of New Keynesian Framework. Bcam Working Paper of Birkbeck Centre for Applied Macroeconomics, 1701.
Piyalekhani., Azam. (2021). Investigating capital increase in listed companies, the third national conference on humanities and development, Shiraz. (In Persian).
Rahnemay Rudpashti, Fereydon. Natiq Golestan, Ahmed. & Yaqub Nejad, Ahmed. (2015). Presenting the mental model of risk perception of Tehran Stock Exchange investors; Investment Knowledge Journal, 4 (13), 195-216. (In Persian).
Salmani Nejad, Ramzan Ali. Azar, Adel. Moqebel Baara', Abbas and Saleh-Abadi, Ali. (2016). The application of soft systems methodology in structuring the problem of financing through the capital market of Iran, Organizational resource management studies, 7 (1), 65-88. (In Persian).
Savignac, F. (2008). Impact of financial constraints on innovation: What can be learned from a direct measure? Economics of Innovation and New Technology, 17(6), 553-569.
Schneider, F. (2004). The size of Shadow Economies of the 145 Countries all Over the World: First Results over the Period 1999 to 2003. Discussion Paper Series, 1431.
Shepherd, D., & Zacharakis, A. (2001). The Venture Capitalist Entrepreneur Relationship: Control, Trust and Confidence in Cooperative Behavior. Venture Capital: An International Journal of Entrepreneurial Finance, 3(2): 129-149.
Steven, Rogers. (2009). Entrepreneurial Finance, McGraw-Hill Companies, Second Edition.
Strauss, A. & Corbin, J. M. (1998). Basics of qualitative research: Techniques and procedures for developing grounded theory, SAGE Publications.
Strebulaev, I. A. (2007). Do tests of capital structure theory mean what they say? The Journal Of Finance Studies, 10, 693-733.
Talavera, O., Tsapin, A., & Zhould, O. (2012). Macroeconomic uncertainty and banking lending, the case of Ukraine. Economic Systems, 36(2), 279-293.
Tan, K. J. K. (2017). Why do overconfident REIT CEOs issue more debt? Mechanisms and value implications. Abacus, 53, 319-348.
Tanzi, V. (2008). The Shadow Economy, Its Causes and Its Consequences. International Seminar on the Shadow Economy Index in Brazilian. Brazilian institute for Ethics in competition.
Timmons, J., & Spinelli, S. (2004). New Venture Creation. Chicago, IL: Irwin, 6th Ed.
Titman .M, Grinblatt. Mutual Fund Performance: A Analysis of Quarterly Portfolio Holdings. The Journal of Business, 62 (3), 393-416.
Van Horn, J.C. (1995). Fundamentals of Financial Management. Practice Hall, 9th Edition, 434-435.
Veldhuis, Niels. Goldin, Keith. Clemens, Jason. (2007). The Economic Costs Of Capital Gains Taxes, Studies in Entrepreneurship Markets, Number 4.
Wang Chih-Yung, Yu-Fen Chen, Chia Wen Yu. (2013). Managerial Optimism and Post-Financing Stock Performance in Taiwan: A Comparison of Debt and Equity Financing, Economics Letters, 119 (3), 332-335.
Wang, Y., Ji, Y., Chen, X., & Song, C. (2014). Inflation, operating cycle and cash holdings. China Journal of Accounting Research, 7(2), 263-276.
Whittington, G. (2017). Value and Profit: An Introduction to Measurement in Financial Reporting. Cambridge University Press.
Wille, D., Hoffer, A., & Miller, S. M. (2017). Small-Business financing after the financial crisis – lessons from the literature. Journal of Entrepreneurship and Public Policy, 6 (3), 315-339.
Winker, P. (1999). Causes and effects of financing constraints at the firm level. Small Business Economics, 12(2), 169-181.
Yu, H, Zhao, Y, Liu, W. et al (2021). Research on the investment efficiency based on grey correlation DEA model. Annals of Operations Research. 1-20.
Zavertiaeva, M., & Nechaeva, L. (2017). Impact of market timing on the capital structure of Russian companies. Journal of Economics and Business, 92, 10-28.
Journal of Accounting and Social Interests
Volume 13, Issue 3 - Serial Number 50
November 2023
Pages 143-184

Files

History

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

Share

How to cite

Statistics