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Business cycle and financial accelerator in iran economy
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Ali Tahvili   , Bahram Shahabi , Kazem Yavari * , Nader Mehregan |
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Abstract: (350 Views) |
One of the most important issues about factors affecting private investment is the impression of firm’s capital structure on investment and topic of financial accelerator . according to financial accelerator theory, assymetric information and weakness of firm’s balance sheet can limit the access of firm’s to financial resource and result in amplification of shocks.
In order to test the effect in iran’s economy, data from 298 non-financial firm in 2005-2015 period is used. Results show that, by considering economic volatility as a shock, financial accelerator effect does not hold. However, by dividing economic volatility in to expansion and recession periods, the effect is hold only for recessions. In other words, in recessions firm’sinvestment is affected and reduced more.also by using dummy variable for firms size, results show that in recession periods limitness of firms to financial resource cause the effect to be more powerful for small firms.
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| Keywords: Financial accelerator, economic volatility, investment, financial system, iran’s economy. |
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notification: Research |
Subject:
Special
Received: 2023/03/12 | Accepted: 2016/09/22 | Published: 2016/09/22
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