Abstract:
Organizational risk is often defined as a change in the flow of profit, or as a sys-tematic or non-systematic changes in the stock return flow. The risk taking of management is conceptualized as the actual investment decisions that are indictors due to uncertainty results. The purpose of this study is to investigate the effect of financial characteristics on future corporate risk taking behavior. After designing the indicators for assessing financial characteristics, the transaction data were collected from the Stock Exchange in the five-year period of 2011-2015. A sample of 111 companies was selected by sampling method based on the Cochran formula, which resulted in a total of 555 year-firm observations. In this study, linear regression and correlation were used to investigate the hypothesis, and for analyzing data and hypothesis testing, we used Eviews software. What can be said in the summing-up and conclusion of the general test of research hypotheses is that the disproportionate changes in sales costs, advertising costs, rental costs, liquidity, financial leverage, and disproportionate changes in capital costs have a positive impact on future corporate risk taking behavior. In addition, other results indicate a negative impact of disproportionate changes in sales growth, inventory, liquidity, and asset turnover on future corporate risk-taking behavior. The results obtained in this paper are consistent with the documentation referenced in the research's theoretical framework and financial literature..
Machine summary:
What can be said in the summing-up and conclusion of the general test of research hypothe- ses is that the disproportionate changes in sales costs, advertising costs, rental costs, liquidity, financial leverage, and disproportionate changes in capital costs have a positive impact on future corporate risk taking behavior.
In addition, other results indicate a negative impact of disproportionate changes in sales growth, inventory, liquidity, and asset turnover on future corporate risk-taking behavior.
Hypothesis 8: Disproportionate change in financial leverage has a negative and positive impacts on future corporate risk-taking behavior.
indatt-1 ) (24) indrevt t: Total industry sales, and Indent: Industry assets (J) Disproportionate change in capital costs: A relative change in the company's capital costs, minus the relative change in the capital costs of the industry, is obtained according to model (25): (View the image of this page) Capx: Capital Costs, and Indcap: Industry Capital Costs 4 Research Findings The descriptive statistics of the research variables are presented in Table 3.
The results of the eighth hypothesis: The disproportionate change in financial leverage of a company has a positive impact on future corpo- rate risk-taking.
The results of the ninth hypothesis: A disproportionate change in asset turnover of a company has a positive impact on future corporate risk-taking.
The results of the tenth hypothesis: The disproportionate change in the company's capital cost has a negative impact on future corporate risk-taking.
Research hypotheses indicate that disproportionate changes in sales costs, advertising costs, rental costs, liquidity, financial leverage, and capital costs have a positive impact on future corporate risk-taking behavior.