چكيده لاتين
Abstract
Drought, as one of the natural disasters, has economic, social, and environmental impacts on various aspects of human life. One of its economic consequences is the effect it has on corporate capital structure decisions. Since drought risk is part of the overall business risk, and given the significant changes in the business environment, the diverse strategies adopted by managers determine the company’s future and consequently play an important role in its future value. The aim of the present study is to determine the effect of drought risk in different provinces on capital structure, the speed of capital structure adjustment, and tax avoidance, considering the moderating effect of operating cash flows, in companies listed on the Tehran Stock Exchange.
To achieve this aim, five hypotheses were formulated. These hypotheses were tested using a sample of 151 companies listed on the Tehran Stock Exchange during the period 2011 to 2022, applying multivariate regression models and panel data analysis. This research is applied in terms of purpose, and in terms of hypothesis inference, it falls within the scope of descriptive correlational studies.
To measure drought in different provinces of Iran, the Standardized Precipitation Index (SPI) was used, based on data provided by the National Drought and Crisis Management Center, which are reported by province.
The findings of this study indicate that drought has a significant negative effect on both capital structure and the speed of capital structure adjustment. On the other hand, operating cash flows, as a moderating variable, have a significant positive effect on the impact of drought on corporate capital structure; however, this moderating variable does not have a significant effect on the impact of drought on the speed of capital structure adjustment. In addition, drought does not have a negative effect on tax avoidance activities.
Keywords: Operating Cash Flows, Drought, Capital Structure, Speed of Capital Structure Adjustment, Tax Avoidance.
