The Effect of Peer Firms on Corporate Financialization: The Role of Industry Competition, Financial Flexibility, and Corporate Risk-Taking[أثیر همتایان بر مالی‌شدن شرکت‌ها: نقش رقابت صنعت، انعطاف‌پذیری مالی و ریسک‌پذیری شرک]

In recent years, corporate financialization has emerged as a key trend in the global economy, attracting the attention of researchers and policymakers. This phenomenon refers to the growing share of financial investments in companies’ financial position statements and a declining focus on operational activities. One important aspect of this trend is the influence of peer firms’ financial behavior within the same industry. This study investigates the impact of peer firms’ financialization on corporate financialization and examines the moderating roles of industry competition, financial flexibility, and corporate risk-taking in this relationship. A sample of 143 firms listed on the Tehran Stock Exchange during the period 2011–2023 was analyzed using panel data and regression models. The findings reveal that peer firms’ financialization has a significant and positive effect on corporate financialization. Furthermore, financial flexibility and corporate risk-taking intensify this relationship as moderating factors. However, industry competition did not show a significant moderating effect, indicating a heterogeneous response of firms to peer financialization behavior under competitive conditions. These results highlight that in uncertain environments; firms are more likely to emulate their peers' financial behavior—depending on their own financial and strategic characteristics—to make more optimal financial decisions. The study provides useful insights for managers and policymakers by underlining the importance of peer behavior and contextual factors in shaping corporate financial strategies, particularly in high-risk and uncertain conditions.