Explaining the Impact of Investor Sentiment on Financial Decisions Considering the Role of Financial Constraints in Companies Listed on the Tehran Stock Exchange
Keywords:
Investor sentiment, financial decisions, financial constraintsAbstract
This study aimed to explain the impact of investor sentiment on financial decisions considering the role of financial constraints in companies listed on the Tehran Stock Exchange during the period from 2018 to 2024. A total of 144 companies were examined as the statistical sample of the study. In terms of objective, this research is classified as an applied study, and in terms of inference method, it falls within the category of descriptive-correlational research. The results obtained from testing the research hypotheses using pooled regression and panel data regression methods in EViews version 10 at the 95% confidence level indicated that financial constraints do not have a significant effect on the relationship between investor sentiment and leverage ratio. Financial constraints have a positive and significant effect on the relationship between investor sentiment and debt maturity. Furthermore, financial constraints have a positive and significant effect on the relationship between investor sentiment and the speed of leverage adjustment. This study provides practical insights into the economic consequences of increased leverage during periods of high investor sentiment on firm value for investors. The present research enhances the understanding of the impact of investor sentiment on firms’ financial decisions.
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Copyright (c) 2025 Soroush Nourollahi, Nader Rezaei (Author); Ali Jafari; Asgar Pakmaram (Author)
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