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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:
  • Reza Zare
  • Hamid Mahmoodabadi
  • Hoda Kiafar
  • Moslem Gheisari

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 relationbetween financial leverage and exchange rate changes.

Suggested Citation

  • Reza Zare & Hamid Mahmoodabadi & Hoda Kiafar & 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:id:429
    DOI: 10.20525/ijfbs.v2i2.144
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    References listed on IDEAS

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    1. Hanousek, Jan & Shamshur, Anastasiya, 2011. "A stubborn persistence: Is the stability of leverage ratios determined by the stability of the economy?," Journal of Corporate Finance, Elsevier, vol. 17(5), pages 1360-1376.
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