Opaque Information, Deviation from Target Leverage and Speed of Adjustment

Advances in Mathematical Finance and Applications

مقاله 2، دوره 4، شماره 2، مرداد 2019، صفحه 15-29   

نوع مقاله: Research Paper

شناسه دیجیتال (DOI): 10.22034/amfa.2019.585872.1191

نویسندگان

Abbas Aflatooni^* ؛ Kefsan mansouri

Department of Accounting, Bu-Ali Sina University, Hamedan, Iran

چکیده

Information opacity leads to information asymmetry. In this situation, in providing their own financial needs, firms face limitations and inevitably provide their financial needs from the debt market by signalling private information to it. In addition, information opacity affects the leverage adjustment speed. This research investigates the effect of information opacity on deviation from target leverage and its’ adjustment speed during 2003 - 2017 in 131 firms listed in Tehran Stock Exchange. To estimate the research models, we use the regression analysis with panel data approach, the approach to control the effects of years and industries and the generalized method of moments with system estimator (system GMM). The research results show that the increase in information opacity increases (decreases) the positive (negative) deviation from target leverage. Also, research findings indicate that the increase in information opacity decreases the adjustment speed.

کلیدواژه‌ها

Opaque information؛ Deviation from target leverage؛ Speed of adjustment

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