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This study aimed to identify the most effective financing model by analyzing the internal and external factors influencing companies. We compiled data from 159 companies spanning 2012 to 2021, encompassing 1,590 company-years, to test 14 hypotheses. These hypotheses were evaluated using Structural Equations Modeling (SEM) with SmartPLS4 software across 3 distinct models. The financing model was categorized into 3 components: internal financing, short-term external financing, and long-term external financing. The findings revealed that the following factors significantly impacted all three types of financing: 1) Board of Directors’ characteristics; 2) Audit characteristics; 3) Internal control characteristics; 4) Ownership structure; 5) Managerial characteristics; 6) Financial reporting quality; 7) Financial performance; 8) Market performance; 9) Investment efficiency; 10) Competitive strategies; 11) Corporate social responsibility; 12) Political communication; 13) Economic uncertainty; and 14) Firm characteristics. Notably, economic uncertainty was found to exert a negative and significant effect on financing across all three dimensions, while the other variables positively facilitated company financing. Furthermore, the analysis indicated that the selected structures had greater explanatory power for long-term financing compared to internal and short-term financing as evidenced by the determination coefficients of all three models.

AbstractOne of the key factors for the development and stability of countries' economies is the creation of a suitable financing system for companies. The financing system of the companies should be updated and optimized should provide an appropriate response in face of various opportunities and threats. In the last decade, companies in the country faced two major crises, the intensification of sanctions and Covid-19, which seems to have had a profound effect on their financing. In this regard, the present study identified the dimensions affecting the development of the financing system of companies by comprehensively studying the research literature and then experimentally tested the proposed model under the influence of sanctions and covid-19 using the structural equation method. In other words, this study sought to answer the challenge of how the effectiveness of the financing model is influenced by the sanctions and covid-19.For this purpose, the data of 159 companies during the years 2013 to 2022 (1590 companies-years) were compiled to examine 14 hypotheses and were tested using the structural equation method using SmartPLS4 software in the form of three separate models.The financing model was divided into three parts: internal, short-term external and long-term external.The results of the research showed that the sanctions and covid-19 crisis have an effect on audit characteristics, financial performance, market performance, investment efficiency, political Communication on internal financing through retained earnings, as well as the effect of financial performance, market performance, investment efficiency, political Communication and Corporate characteristics significantly reduce short-term and long-term external financing and increase the impact of economic uncertainty on internal financing through retained earnings and short-term and long-term external financing.Finally, based on the determination coefficients of all three research models, it was determined that the selected structures have more explanatory power for long-term financing than internal financing and short-term financing.

Objective: Overconfidence is an interdisciplinary concept related to the possibility of misjudgment in psychology. More importantly, management overconfidence is a concept derived from behavioral financing. Overconfidence can define unfounded belief in one's cognitive abilities, judgments, and intuitive reasoning. Overconfidence is one of the most important personality traits of managers that affect risk-taking companies in prioritizing their financial resources in terms of cost. Companies prefer to use the domestic budget and then the external financial resources as a last resort to issuing new shares. Because managers with overconfidence feel optimistic about the profitability of their business, they assume the capital market is underestimating their stock. In cases where the entity needs financing, they prefer financing through issuing bonds instead of issuing shares and think they may increase the wealth of shareholders by choosing debt with a short-time maturity. Overconfidence is irrational behavior, and corporate executives express it when making business decisions. The purpose of this study is to investigate the relationship between overconfidence management and investment efficiency with emphasis on the mediating role of internal financing In the companies listed on the Tehran Stock Exchange, TSE, over the period 2009-2018. Methods: Data collection completed using modern software, financial statements of the TSE official website. To test the research hypotheses, we used a panel data model with Eviews software. In this research, the statistical sample consists of information and data of 101 companies from the TSE. This study tests five hypotheses. The logarithm of total assets was used to measure the control variable of company size, and the ratio of long-term debt to total assets to measure the financial leverage control variable. Also, the ratio of net profit to total assets was used to assess the control variable of return on assets, and the ratio of net profit to equity to assess profitability. Results: Overconfidence in management has a positive and significant relationship with internal financing. Internal financing has a positive and significant relationship with overinvestment and a negative and significant relationship with underinvestment. Internal financing does not have any mediating effect on the relationship between management overconfidence and investment efficiency. Control variables are firm size, financial leverage, return on assets, and profitability. The difference between earnings per share and real earnings per share measures the management distrust. The logarithm of the accumulated profit and legal reserves measure the variable of domestic financing, and investment efficiency is divided into two variables of over-investment and under-investment. Conclusion: As managers become more confident, their willingness to use internal resources increases, and as internal financing rises, managers tend to invest more. Manager's distrust is an essential factor in financing so that managers with overconfidence incline to raise domestic financing and investment more than others.

Objective: One of the most important decisions of corporate managers is how to finance economic enterprises, which play an important role in the continuation and growth of their profitability. Numerous factors can affect companies' financing decisions, including the personality traits of senior managers. The purpose of this article is to investigate the effect of excessive self-confidence of managers on companies' financing working procedures in Tehran Stock Exchange. Method: The statistical population of this research is the companies listed in Tehran Stock Exchange and its statistical sample includes data of 139 companies during the seven-year period 2011-2017. The sampling method is systematic removal and the method used for estimating the model is multivariate regression method using estimation of combined data with fixed effects. Findings: The results showed that there is an inverse and significant relationship between excessive self-confidence of managers and financing through internal resources of the company, so that increasing self-confidence of managers reduces financing through internal resources of the company, so that increasing self-confidence of managers reduces financing through internal resources of the company. There is also a significant and direct relationship between managers' overconfidence and financing out of company, so that high self-confidence leads the corporate managers toward extra-organizational financing, and thus the amount of out-of-company financed resources increases. Conclusion: Overconfidence causes managers to fail to act rationally and misinterpret their accepted risk level. For this reason, overconfident managers may, contrary to expectations, be inclined to this type of financing despite the risk of out-of-company financing, and ultimately cause to increase the company's financial costs and reduce its profitability.

Objective: The purpose of this study is to examine the relationships between management overconfidence, internal financing, and investment efficiency in the companies listed in the Tehran Stock Exchange. Method: A sample of 130 companies was selected in the period 2007-2017. To measure investment efficiency, the indicators of over- and under-investment were rated. Also, to measure management overconfidence and internal financing, capital expenditures and retained earnings were assessed, respectively. Results: The findings showed that there is a positive relationship between management overconfidence and internal financing. Also, there are positive relationships between management overconfidence and investment level, and between management overconfidence and over-investment, and there is a negative relationship between the management overconfidence and under-investment. On the other hand, the results showed that there are positive relationships between internal financing and the investment level, and between internal financing and over-investment, and that there is a negative relationship between internal financing and under-investment. The results indicate that 1) internal financing has positive effects on the relationship between managerial overconfidence and the level of investment, 2) the interactive effect of internal financing on the relationship between the managerial overconfidence and over-investment is significant and positive, while the similar effect concerning under-investment is not significant. Conclusion: Existence of internal resources increases the motivation of overconfidence managers in using personal gain resources and leads to non-optimal investment behaviors. This process is done by increasing the levels of investment.

The research deals with the relation between asset growth and stock return and also the role of financing resources in returns of firms with high or low asset growth. With an accurate study of literature, six hypotheses and a statistical sample of 96 firms listed in Tehran Stock Exchange for a seven-year period during 2005 to 2011 have been provided. Hypotheses were analyzed by multivariate regression and tests of F and t. Results obtained by hypothesis test show that there is a significant positive relation between asset growth and stock return of firms and there is a significant negative (positive) relation between internal & external financing and stock return of firms with high (low) asset growth. But relation of financing through bank and capital market with stock return of firms with high (low) asset growth is significantly positive (negative). In addition, the results show that there is no significant relation between the proportion of free float shares and stock return of firms with high asset growth, however, there is positive and significant relation between the proportion of free float shares and returns of firms with low asset growth.

Continuously, management of firm growth and directing through improving profitability are among fundamental apprehensions of the managers and selecting financial resource is of vital significance in this regard. On the other hand, both profitability and firm growth influence life cycle, and the relationship between them may be different in various phases of life cycle of companies. This research aims to answer to the questions of using domestic financial resources in order to provide financial growth by considering various phases of life cycle of companies listed on Tehran Stock Exchange. Therefore, among the listed companies, 85 companies were studied for the period 2007 to 2011. Multivariate regression model and analyzing panel data were used for hypotheses tests. The results show that there is a positive and significant relationship between profitability of past years and growth and the impact of profitability of past years on firm growth is different by changing intervals. On the other hand, internal financial resources as one the main resources of financing firm growth are used by companies. Moreover, findings show that the impact of life cycle of companies on firm growth in maturity period is more than the same for other phases of life cycle. In other words, companies which have used internal financial resources in recent years and they are in maturity phase, experience higher growth of sale.