Iranian Journal of Accounting, Auditing and Finance in the Islamic Environment

Iranian Journal of Accounting, Auditing and Finance in the Islamic Environment

Investigating the relationship between financial constraints, credit rating and cash flow sensitivity in the Islamic capital market

Articles in Press

Document Type : Original Article

Authors
Maedeh ghasemi 1
hamid bodaghi 2
abbas lari dasht bayaz 2
1 Master of Accounting, Binaloud Institute of Higher Education
2 Asistant Professor in Accounting, Binaloud Institute of Higher Education
10.22034/aafie.2025.498711.1064
Abstract
The aim of this study is to investigate the relationship between financial constraints, credit rating and cash flow sensitivity. The present study is applied in terms of its purpose, quantitative data type, deductive-inductive in terms of its implementation logic, and descriptive-correlation in terms of its implementation method. The data under study were collected during the event period from a sample of companies listed on the Tehran Stock Exchange that were selected using the accessible population method. The accessible population consisted of 190 companies listed in selected industries on the Tehran Stock Exchange during the years 2014-2022. In order to test the research hypotheses, multivariate regression models were estimated over a 9-year test period. Based on statistical analysis and regression estimation, the results of examining the hypotheses at the expected error level showed that there is an inverse and significant relationship between financial constraints and the company's credit rating. There is a direct and significant relationship between financial constraints and the company's cash flow sensitivity.
Iranian Journal of Accounting, Auditing and Finance in the Islamic Environment

Articles in Press, Accepted Manuscript
Available Online from 05 August 2025

  • Receive Date 12 January 2025
  • Revise Date 31 July 2025
  • Accept Date 05 August 2025
  • Publish Date 05 August 2025