Effect of Government Presence in Capital Structure on the Relationship between Intellectual Capital and Financing Decisions in Listed Companies in Tehran Stock Exchange Using Structural Equation Modeling

Abstract

The main purpose of present research is to investigate the effect of governmental ownership on the relationship between intellectual capital and financing decision. Empirical studies have identified other factors which are related to financing decisions and influence the intellectual capital efficiency. Therefore, in this research in addition to investigating the effect of intellectual capital and its dimensions on financing decisions, the moderating role of governmental ownership on the relationship between intellectual capital and financing decision has been considered as well. In order to attaining research goal, two main hypotheses and twelve sub-hypotheses have been provided. Research sample consisted of 107 listed companies in Tehran stock exchange for period from 2010 to 2018. Intellectual capital was calculated by Pulik model and leverage was measured by book leverage and interest rate ratio. Results show the positive effect of intellectual capital on using debts in capital structure. Also, results show that governmental ownership can enhance the positive relationship between intellectual capital and borrowing.