Analyzing the Impacts of Credit Constraints on Exporting Prospect of Companies Listed In Tehran Stock Exchange (TSE)
Journal Title: IOSR journal of Business and Management - Year 2018, Vol 20, Issue 6
Abstract
Credit constraints seriously challenge the investments in and the growth of companies in developed and developing countries. This is because the failure of these companies to secure external finances hinders their development. In addition, adoption of the right export strategies by financial managers of manufacturing companies as well as the relation between credit constraints and investments are crucial to development of any company. This research, via the adoption of Logit model, attempted to analyze the impacts of credit constraints on the probability of exports by companies present in Tehran Stock Exchange (TSE) during 2008 -2014 time period. The statistical population covered 102 companies listed in Tehran Stock Exchange (TSE). The result showed that the impacts of the independent indicator of credit constraint or KZ indicator on the virtual dependent indicator of 0 and 1 of export probability would be 1 in case of export probability and 0 if proved otherwise. This indicates the existence of an inverse relation between credit constraints and the export probability in sample companies, i.e. decreased credit constraints enhances the probability of exports and vice versa. The findings could prove a great help to commercial managers in adoption of financial reporting procedures that may provide shareholders with correct and accurate information for financial decision-making.
Authors and Affiliations
Maryam Fahmideh
Keywords
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- EP ID EP411667
- DOI 10.9790/487X-2006046572.
- Views 80
- Downloads 0
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