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Vol.1 , No. 5, Publication Date: Feb. 15, 2016, Page: 119-125
| [1] | Lafte Sarkhe, Department of Accounting, Ahvaz Branch, Islamic Azad University, Ahvaz, Iran. |
| [2] | Mohammad Ramadan Ahmadi, Department of Accounting, Shahid Chamran University, Ahvaz, Iran. |
| [3] | Esmaeil Hamid, Department of Accounting, Shadegan Branch, Islamic Azad University, Shadegan, Iran. |
| [4] | Abdollah Mojadam, Department of Accounting, Shadegan Branch, Islamic Azad University, Shadegan, Iran. |
This study investigated the effect of company financial leverage and growth opportunities on the investment decisions using information on Iranian companies listed on Tehran Stock Exchange. This paper aims to answer is whether financial leverage influences the investment decisions in Iranian context. By answering this question, the author attempts to add to the existing literature by bringing new evidence on the relationship between leverage and investment decisions of firms listed in Tehran Stock Exchange in Iran. For the study purpose, the 83 companies with the desired condition were selected for this purpose and panel data with fixed effects was used to test hypotheses. The results of this research show that companies with higher Financial Leverage adjust their investment decisions. The results of this study can be used by shareholders, managers and finance researchers.
Keywords
Investment Decisions, Financial Leverage, Growth Opportunities
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