We investigate the potential explanations to increase capital by Iranian firms listed at Tehran Stock Exchange (TSE). Shortage of cash due to low earnings quality of firms and the legal force to distribute approved cash dividends in due time are studied as the two possible reasons proposed for firms that frequently raise equity capital via new contributions of shareholders. The results of conducting conditional distribution analyses and of performing regression analyses show that cash dividends could be a possible cause for firms to raise capital. However, similar to Karami et al. (2007), the results show no relation between low earnings quality and capital increase.
Talaneh, A., Mahmoodi, M., & Kermabi, E. (2012). Capital Raise by Iranian Listed Firms. Accounting and Auditing Research, 4(16), 80-101. doi: 10.22034/iaar.2012.104583
MLA
Abdolreza Talaneh; Mohammad Mahmoodi; Elham Kermabi. "Capital Raise by Iranian Listed Firms". Accounting and Auditing Research, 4, 16, 2012, 80-101. doi: 10.22034/iaar.2012.104583
HARVARD
Talaneh, A., Mahmoodi, M., Kermabi, E. (2012). 'Capital Raise by Iranian Listed Firms', Accounting and Auditing Research, 4(16), pp. 80-101. doi: 10.22034/iaar.2012.104583
VANCOUVER
Talaneh, A., Mahmoodi, M., Kermabi, E. Capital Raise by Iranian Listed Firms. Accounting and Auditing Research, 2012; 4(16): 80-101. doi: 10.22034/iaar.2012.104583
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