The effects of business cycle and debt maturity on a firm's investment in fixed assets

The aim of this research is investigation of the effects of business cycle and debt mathurity on firms’ investment on fixed assets. In this research the financial informahion of 113 industrial firms listed in Tehran Stock Exchange during 2004 – 2014 (1243 firm-years) were considered and regression analysis based on pooled data were used in hypothesizes test. The results showed that there is direct and meaningful relation between business cycle and investment on fixed assets, and there is, also a meaningful and reverse relation between debt maturity and firm investment in fixed asset. Additionally, the results showed that business cycle has meaningful and direct effect on the relationship between debt maturity and investment in fixed assets. Extra tests on industry levels (medical materials and productions, car and pieces structure, chemical materials and productions, metals, tile and ceramic) showed that there was a meaningful relation between business cycle and firm investment in fixed assets in chemical industry, but there wasn’t any relationship in other industries.