نسرین رضایی مقدم

Although there has been an increasing amount of literature for a more detailed analysis of the corporate governance environment, they have tried to model its main policies including three factors of investment, dividend payout and financing, but there are still some unanswered questions in this regard. Some things like, how is the interaction between different financial behaviors of the company? And is it possible that, in the face of unstable conditions, maintaining a financial behavior and consequently a particular policy at its steady state level is superior to others? The main goal of this research is to provide empirical evidence of the joint and simultaneous determination of the aforementioned behaviors, while examining the dynamic interactions of financial behaviors of companies. This research uses the vector auto regression panel modeling framework, which prevents the researcher from predetermining the role and relationship of several key behaviors of the firm., the main variables of the research include: the investment decision of the company (in the form of the ratio of capital expenditures to total assets), the amount of dividend payout (the rate of dividend payout was obtained by dividing the amount of cash dividend by the total assets), decisions to issuance (repurchase) equity (the ratio of issuance(or repurchase) of equity over total assets), the company's leverage ratio (the company's total debt divided by total assets) and return on assets (net income divided by total assets). The unit root showed that all research variables are at a stable level, and the circle unit root test indicates that the model satisfies the condition of stability. A study conducted on a selected sample of 118 companies admitted to the Tehran Stock Exchange showed that during the years 2006 to 2022, all firm s financial behaviors are jointly determined and the companies have changed the amount of dividend payout payout, debt, investment and finally the shares issued, respectively, in order to absorb the incoming shocks, which is a confirmation of Hierarchical theory of financial resources. Also, it seems that the incentive of signaling is weak among the sample companies and changing the dividend payout is considered the easiest tool to adjust the costs, maintain the value of the company and make the company more agile. Some of the results of financial behavior of companies are as follows:Investment is largely determined exogenously, and firms adjust investment only slightly, about 22 percent, to absorb shocks to other financial behaviors. This issue can be due to the high cost of stopping and starting an investment project.There is the least willingness to adjust decisions related to issuing shares to achieve other financial goals. This issue can be caused by the adverse effects of issuing shares according to the theory of agency costs. But unlike some studies that introduce dividend payout payout rates as stickier than leverage rates (such as Fama and French, 2002), in this analysis, in order to absorb shocks to other variables, dividend payout changes are observed more than leverage rates. Therefore, it can be said that dividend payout decisions are the most endogenous financial decisions in Iran.Firms tend to adjust existing shocks by changing dividend payout instead of adjusting other financial behaviors. However, even this number of changes indicates that the dividend payout is not a pure shock absorber. In other words, it may be the first choice, but it is not the only financial behavior that is always used to absorb incoming shocks.Stock issuance (or repurchase) decisions have the highest cost of deviation. Stock issuance (or repurchase) decisions expose managements inside information to the public, so it is natural that they do not want to continually signal to the market that their stock is overvalued by issuing stock. Therefore, companies refuse to use this financial behavior to absorb shocks to the company. The results of the research showed that with a shock to any of the financial behaviors, other financial behaviors also change, which is a confirmation of the joint determination of the desired financial behaviors of the company. It also seems that the change in the amount of equity, or the net issuance of shares, according to what is always emphasized in the hierarchy theory, entails a very high cost for the company so companies avoid its continuous changes. At the same time, contrary to existing primary studies, the company's dividend payout payout according to the evidence of the study (Allen and Michele, 2003) does not contain information about the company's future earnings. In other words, maintaining a stable and uniform distribution of profits has the lowest priority among financial behaviors, which shows that there are no concerns about the motivation of signaling among the companies sampled in this research. Also, due to the concentration of ownership of companies or the close relationship with borrowers in bank-oriented countries similar to Iran, the level of motivation for signaling is low. Based on this, one of the future proposals of this study is to examine the interaction of financial behaviors of companies by considering the decision-making space of companies by introducing frictions such as various uncertainties, the diversity of institutional levels of companies and various financial structures using the approach considered in this research.

Nowadays, the financial sector is a major and developing part of modern economies. The development of different kinds of economic activities depends on their having access to the financial services. Thus, the relation between financial development and economic growth has been an interesting issue to the economic researchers in recent years. One of the most important factors affecting the financial markets development and their becoming efficient is the diversification of financial instruments. Diversifying them, with their different risk and maturity, on the one hand, provides the owners of market funds with a various range of investment alternatives, and on the other hand, makes the companies’ financing methods diverse and facilitates the financing of projects. Moreover, historical evidences support the financial innovation’s crucial role in economic growth. Given the importance of the issue, we try to examine the innovative features of the contracts used in the Iranian usury-free banking system. Our findings show that, increasing the financial stability, distributing the risk between the financial markets participants, and covering inflation through the channel of financial innovation, these contracts lead to the development of financial markets. Furthermore, using endogenous growth models, we have analyzed these contracts’ relation with financial innovation and economic growth.