EN
Incorrect Pricing Impact on Investment and the Capital Structure of Companies with Financial Constraints
Abstract
The present study aimed to explore the impact of mispricing on capital investment and capital structure in companies with financial constraints. Methodology is descriptive-analytic with casual-comparative research type. Due to homogenization of statistical sample during research years, population was limited to companies were accepted in stock exchange before 2009 and attended till the end of 2014. According to entry criterion, 101 companies were selected by elimination method as the sample. Models by Trinugroho and Rinofah (2011) were used to analyze the research variables, and Kaplan and Zingales index was applied to indicate companies with financial constraints. Data collected by descriptive tests, Kolmogorov-Smirnov test and multi-variable regression. Results showed that there is negative and significant relationship between capital investment and cash flow. The impact of mispricing on capital investment in companies with high financial constraints is not more than companies with less financial constraints. There is reverse relationship between mispricing and debt ratio. The impact of mispricing on debt ratio in companies with high financial constraints is not more than companies with less financial constraints.
Keywords
Details
Primary Language
English
Subjects
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Journal Section
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Publication Date
June 1, 2017
Submission Date
June 1, 2017
Acceptance Date
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Published in Issue
Year 2017 Volume: 7 Number: 2
APA
Museloo, K. A., & Abartavi, S. (2017). Incorrect Pricing Impact on Investment and the Capital Structure of Companies with Financial Constraints. International Journal of Economics and Financial Issues, 7(2), 319-324. https://izlik.org/JA42BH48KY
AMA
1.Museloo KA, Abartavi S. Incorrect Pricing Impact on Investment and the Capital Structure of Companies with Financial Constraints. IJEFI. 2017;7(2):319-324. https://izlik.org/JA42BH48KY
Chicago
Museloo, Khalil Abbasi, and Shaker Abartavi. 2017. “Incorrect Pricing Impact on Investment and the Capital Structure of Companies With Financial Constraints”. International Journal of Economics and Financial Issues 7 (2): 319-24. https://izlik.org/JA42BH48KY.
EndNote
Museloo KA, Abartavi S (June 1, 2017) Incorrect Pricing Impact on Investment and the Capital Structure of Companies with Financial Constraints. International Journal of Economics and Financial Issues 7 2 319–324.
IEEE
[1]K. A. Museloo and S. Abartavi, “Incorrect Pricing Impact on Investment and the Capital Structure of Companies with Financial Constraints”, IJEFI, vol. 7, no. 2, pp. 319–324, June 2017, [Online]. Available: https://izlik.org/JA42BH48KY
ISNAD
Museloo, Khalil Abbasi - Abartavi, Shaker. “Incorrect Pricing Impact on Investment and the Capital Structure of Companies With Financial Constraints”. International Journal of Economics and Financial Issues 7/2 (June 1, 2017): 319-324. https://izlik.org/JA42BH48KY.
JAMA
1.Museloo KA, Abartavi S. Incorrect Pricing Impact on Investment and the Capital Structure of Companies with Financial Constraints. IJEFI. 2017;7:319–324.
MLA
Museloo, Khalil Abbasi, and Shaker Abartavi. “Incorrect Pricing Impact on Investment and the Capital Structure of Companies With Financial Constraints”. International Journal of Economics and Financial Issues, vol. 7, no. 2, June 2017, pp. 319-24, https://izlik.org/JA42BH48KY.
Vancouver
1.Khalil Abbasi Museloo, Shaker Abartavi. Incorrect Pricing Impact on Investment and the Capital Structure of Companies with Financial Constraints. IJEFI [Internet]. 2017 Jun. 1;7(2):319-24. Available from: https://izlik.org/JA42BH48KY