TY - JOUR ID - 91318 TI - The Effect of Petrochemical Industry on Relationship between Information Asymmetry about Investment Risk and Financing Choice JO - Petroleum Business Review JA - PBR LA - en SN - 2645-4726 AU - Alimoradi, Abbas AU - Rajabdorry, Najme AD - Accounting Department, Tehran Faculty of Petroleum, Petroleum University of Technology Y1 - 2018 PY - 2018 VL - 2 IS - 2 SP - 28 EP - 37 KW - Information Asymmetry KW - Capital structure policy KW - Petrochemical industry KW - Multiple regressions DO - 10.22050/pbr.2018.91318 N2 - Though it is generally accepted that information asymmetry has an impact on capital structure policy, the nature of the information asymmetry is not well understood. Recent theoretical works and empirical evidences suggest that financing choice depends upon the information asymmetry about investment risk of the particular use of funds (Halov & Heider, 2012) (Rao, Mohanty, & Baxamusa, 2015). Consistent with this view, we analyzed the data gathered among 199 companies listed in Tehran Stock Exchange during 2009-2016 by The Multiple Linear Regressions in order to test research’s hypotheses have been applied. We also examined the influence of Petrochemical industry on that relationship. The findings show that equity is used to fund projects with greater information asymmetry about their risk such as intangible assets and capital expenditure, while debt is used to fund investments with lower information asymmetry about their risk such as liquidity enhancement. We also found that the membership in petrochemical industry has no effect on the intangible assets and cash holding’s financing method, but concerning with capital expenditure and working capital the impact is significantly negative. UR - https://pbr.put.ac.ir/article_91318.html L1 - https://pbr.put.ac.ir/article_91318_16fa1f800bcb7b5b7c14a1db3eb17f4a.pdf ER -