Journal of Industrial and Systems Engineering

Journal of Industrial and Systems Engineering

Analysis of the Impact of Risk Factors and Financing Methods on Company Performance (Case Study: Transportation Industry)

Document Type : Research Paper

Authors
Hossein Soltani Nejad 1
Roya Darabi 2
Mohsen Hamidian 3
1 Department of Accounting, South Tehran Branch, Islamic Azad University, Tehran, Iran
2 Professor of Accounting, South Tehran Branch, Islamic Azad University,Tehran,Iran
3 Department of Management and Accounting, South Tehran Branch, Islamic Azad University, Tehran, Iran
Abstract
Given that the cost of internal financing is lower than external financing and generally provides easier access to funds and resources, it is often the preferred choice for companies. However, internal financing may not always be feasible or effective, especially depending on the business cycle and the company's operational scale. In such cases, external financing becomes necessary, and selecting appropriate and low-risk methods for external financing requires careful and strategic consideration. Therefore, estimating the risks associated with external financing in the transportation industry is essential for managing the company’s capital structure and utilizing external financial resources more confidently. This study, conducted in 2023, aims to examine the impact of financing risk factors on the performance of companies in the transportation industry. The research is applied in nature, based on its objectives, and uses a descriptive-survey method for data collection. A field study was conducted by designing and distributing a questionnaire among 386 individuals, including CEOs, vice presidents, executives, and key personnel in the transportation industry, all of whom were well-versed in the financing process. The collected data were analyzed using structural equation modeling techniques with the Smart PLS software. The analysis results showed that, in addition to the validity of the relationships between the core variables and the confirmation of all elements of the model, the derived model demonstrated strong validity, reliability, and overall fit.
Keywords
Financing risk
Financing methods
Financial performance
Structural equation modeling
Transportation industry
Subjects
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  • Receive Date 15 October 2023
  • Revise Date 22 December 2023
  • Accept Date 24 December 2023