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A survey on the effects of the exchange rate changes and financial flexibility on the usage of financial leverage in accepted companies of Tehran stock exchange

Author

Listed:
  • Hamid Mahmoodabadi

    (Assistant Professor, Shiraz University,Shiraz, Iran)

  • Hoda Kiafar

    (Accounting Department, Lar Branch, Lar Usage Scientific General University, Marvdasht, Iran)

  • Reza Zare

    (Accounting Department, Marvdasht Branch, Islamic Azad University, Marvdasht, Iran)

  • Moslem Gheisari

    (Accounting Department, YasougeBranch, Islamic Azad University, Yasouge, Iran)

Abstract

In the present study we try to examine the exchange rate changes and financial flexibility as the economic stable indexes on the financial leverage use in the companies so the main issue in this study is to define the financial leverage relation with exchange rate changes and financial flexibility. That is why 88 companies of the companies listed in Tehran stock exchange in 2005–2011. The study type is descriptive–correlative and the multivariable linear regression was used to analyze the data. The findings from the hypotheses test state there is a significant relation between financial leverage and financial flexibility while there isn't relation between financial leverage and exchange rate changes.

Suggested Citation

  • Hamid Mahmoodabadi & Hoda Kiafar & Reza Zare & Moslem Gheisari, 2013. "A survey on the effects of the exchange rate changes and financial flexibility on the usage of financial leverage in accepted companies of Tehran stock exchange," International Journal of Finance & Banking Studies, Center for the Strategic Studies in Business and Finance, vol. 2(2), pages 32-40, April.
    • Handle: RePEc:rbs:ijfbss:v:2:y:2013:i:2:p:32-40
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    References listed on IDEAS

    as
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