Volume 1, Issue 3, 2019, Page 224 - 236
Author(s) :
Milad ghamgin *1 , Mohamad reza vatanparast 2
1 Graduated of master of Accounting, Islamic Azad University Rasht, Iran
2 ssociate Professor, Faculty of Management and Accounting, Islamic Azad University, Rasht, Iran


Abstract :
Overinvestment influences the financial leverage and the corporate financial system liquidity. There is a relationship between corporate leverage and overinvestment when the financial system\'s cash flow is high, and this causes a change in the role of financial leverage. The main objective of this paper is Investigating the effect of overinvestment on financial leverage and liquidity of the listed firms in Tehran Stock Exchange. The present study is an applied type with a correlation approach and the necessary data using the statistical population including 160 companies listed on the Tehran Stock Exchange, for the period 1393 to 1397 using the combined data method and minimal regression Squares are analyzed. The results of regression model estimation show that there is a positive and significant relationship between financial leverage and overinvestment, Liquidity also has a significant effect on the relationship between financial leverage and overinvestment.

Keywords :
overinvestment, financial leverage, liquidity.