The Relationship Between Financing Restrictions and Financing Strategies: An Emphasison the Mediating Role of Corporate Governance

The purpose of this study is to investigate whether the increase in financing restrictions of companies has an effect on their financing strategies. Based on this, the strategies of company managers for financing were formulated in the form of their desire to finance internally instead of externally and through transactions with related parties and financing from debt instead of issuing shares in the capital market. In addition, this research, emphasizing the role of corporate governance and its effect on defined relationships, seeks to provide a reasonable answer in relation to the effect of corporate governance on reducing the adverse effect of financing restrictions on the financing strategies of companies. In this regard, the data of 150 companies listed in the Tehran Stock Exchange during 2015-2019 were selected, and according to the Kaplan/Zengales indices as a measure of supplier criteria governing the companies, research hypotheses were examined. The results of this study showed that financing restrictions have a negative and significant relationship with transactions with related parties and a positive and significant relationship with capital structure. In addition, corporate governance only has a moderating effect on the relationship between financing constraints and capital structure.