International Journal of Nonlinear Analysis and Applications

The effect of companies' debt structure and investment on the financial distress of companies admitted to the Tehran stock exchange

Document Type : Research Paper

Authors

Accounting Department, Gachsaran Branch, Islamic Azad University, Gachsaran, Iran

Abstract

This study aimed to evaluate the effect of companies’ debt structure and investment on the financial distress of companies listed on the Tehran Stock Exchange. This applied study was conducted on companies listed on the Tehran Stock Exchange in 2016-2021, 120 of which were selected by screening. The research hypotheses were tested, and the results were analyzed using panel data, Generalized least-squares (GLS) regression, and EViews software version 10. Based on the results, the capital structure had a positive and significant effect on the financial distress of listed companies. In addition, there was a significant negative relationship between investment and financial distress.

Keywords

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International Journal of Nonlinear Analysis and Applications
Volume 15, Issue 3
March 2024
Pages 221-228
  • Receive Date: 13 October 2022
  • Revise Date: 20 November 2022
  • Accept Date: 23 December 2022