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Explaining the optimal financing model for listed companies with an emphasis on credit constraints and income-based borrowing
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Shareareh Yektakhah1   , Heidar Mohamadzadeh salteh *2 , Mohsen Mehrara3 , Rasoul Baradaran Hassanzadeh4 |
1- Department of Economics, Ara.c., Islamic Azad University, Tabriz, Iran.
2- Department of Accounting, Mara.C., Islamic Azad University, Marand, Iran. , 2752323883@iau.ir
3- Professor, Department of Economics, Faculty of Economics, University of Tehran, Tehran, Iran
4- Department of Accounting, Ta.c., Islamic Azad University, Tabriz, Iran. |
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Abstract: (8 Views) |
In the current economic conditions, companies' access to stable and low-cost financial resources plays a decisive role in their investment decisions and sustainable growth. The present study aims to explain the optimal financing model of Iranian listed companies with an emphasis on credit constraints and income-based borrowing. In this study, the PSTR panel soft transition threshold model has been used to analyze the nonlinear effects of credit constraints and other financial and structural variables. The data under study include companies listed on the Tehran Stock Exchange during the years 2014 to 2023. Three empirical models were designed in the present study: the first model related to investment decisions, the second model related to domestic financing, and the third model related to external financing of companies. The results showed that income-based borrowing constraints, liquidity risk, and financial leverage have a negative and significant effect on investment and domestic and external financing, and these negative effects are intensified as the severity of the constraints increases. In contrast, return on assets, firm age, growth, size, and investment showed a significant positive effect on firms' financial behavior, although their positive effect decreases with increasing credit constraints. These findings emphasize the importance of accessing diverse financial resources, managing debt, and utilizing domestic and foreign resources to promote investment and sustainable financing of firms. The results of this study can be useful for corporate managers, policymakers, and financial institutions to make optimal financial decisions, improve investment, and strengthen domestic and foreign financing, paving the way for the sustainable development of listed companies.
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| Keywords: Financing, credit limits, income-based borrowing, listed companies. |
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Full-Text [PDF 740 kb]
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Article type: Research |
Subject:
Special
Received: 2026/04/22 | Accepted: 2026/07/25
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