A comparative study of the effectiveness of financing from the banking system and the stock market on the performance of firms

اقتصاد پولی مالی

Article 3, Volume 29, Issue 24, September 2022, Pages 61-85   

Document Type: Original Article

DOI: 10.22067/mfe.2022.77316.1208

Authors

hossein samsami¹; mohammad osoolian¹; hesam hasanpur baghban^{* 2}

¹shahid beheshti

²SHAHID BEHESHTI UNIVERSITY

Abstract

The present article compares the effectiveness of financing from the banking system and the stock market on the performance of listed companies in the Tehran Stock Exchange. Test cases have been studied. This study examined the statistical data of 55 companies during 7 years (3 years before entry, 3 years after entry and year of entry) and concluded that between the effects of financing from the banking system and the stock market on the performance of firms In this study, the productivity variables of total factors of production, investment and employment as performance variables, and long-term facilities, capital increase from cash flow and entry into the stock market as an independent variable and firm size, interest rate, Firm production, wages, public and private ownership of the company are considered as control variables. According to the research results, financing from the banking system has a positive and significant effect on the investment variable as a performance variable, while entering the stock market and increasing cash flow does not have a significant effect on the investment variable. Also, the effect of entering the stock market and increasing cash flow, such as the effect of financing from the banking system on the productivity variables of all factors of production and employment is meaningless.

Keywords

STOCK MARKET; BANKING SYSTEM; FINANCING

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