Operational and Performance Research in Accounting and Auditing

Operational and Performance Research in Accounting and Auditing

The Impact of the moderating role of product market competition on the relationship between financial leverage and innovation performance in companies listed on the Tehran Stock Exchange

Document Type : Original Article

Authors
Mohammad Reza Pajoohi 1
Fatemeh Jafari 2
1 , University of shiraz
2 Islamic Azad university ,Fasa,Iran
Abstract
Objective: The aim of this study was to investigate the effect of product market competition on the relationship between financial leverage and innovation performance in the Tehran Stock Exchange. Decision-making on capital structure is still a key factor for investments related to a company's innovation. However, the impact of corporate capital structure (financial leverage) on managers' decisions regarding investment related to research and development innovation is different.
Research Method: For this purpose, a sample consisting of 103 companies listed on the Tehran Stock Exchange during the years 2012 to 2020 was selected. The statistical method used to test the research hypotheses is panel data method and principal component analysis and the tests were performed using R statistical software.
Findings and Conclusion: The research findings indicate that there is a significant relationship between financial leverage and innovation performance. Also, the results show that there is no significant relationship between product market competition and financial leverage on innovation performance.
Keywords
Keywords: Financial leverage
product market competition
innovation performance
Tehran Stock Exchange