Journal of Accounting and Management Vision

Journal of Accounting and Management Vision

The relationship between company characteristics and financial development with an emphasis on the uncertainty of economic policy in companies admitted to the Tehran Stock Exchange.

Document Type : Original Article

Authors
Saina Asghariyan 1
Mohammadreza Abbasi Astamal 2
1 Non-profit Shams Science and Technology Institute
2 Assistant Professor of Accounting Department, Varzaghan Branch, Islamic Azad University, Varzghan, Iran.
Abstract
The aim of the current research is to determine the relationship between company characteristics and financial development, emphasizing the uncertainty of economic policy in companies admitted to the Tehran Stock Exchange. In this research, financial development has been measured using Gupta et al.'s (2011) model. Company characteristics include company size, company age, company growth, financial leverage, and company profitability. Uncertainty of economic policy was also measured using the model of Jaramillo and Sancak (2007). The current research is applied in terms of purpose and in terms of methodology it is causal after the occurrence. The statistical population of the research is the companies admitted to the Tehran Stock Exchange, which have been included in the statistical sample of this research with the systematic elimination sampling method of 130 companies. The time period of the research is 1391 to 1399. Regression analysis has been used to test formulated hypotheses. The results of the research show that the characteristics of size, age, growth and profitability have a positive (direct) relationship with financial development, and financial risk has a negative (inverse) relationship. While economic policy uncertainty has no significant effect on the relationship between company characteristics and financial development.
Keywords
Company characteristics
financial development
economic policy uncertainty