The Effect of Firm Value on Business Credit Policies

A review of previous literature suggests that corporate credit policies affect the market value of firms, and this situation can vary the ways of financing between firms. Accordingly, this study investigated the effect of the effect of firm value on business credit policies. To achieve the purpose of the study, the financial information of 163 companies listed on the Tehran Stock Exchange (TSE) based on systematic screening method and multivariate regression method was used. The period of this research is 2012 to 2021. Findings showed that the value of the firm with TBQ criterion has a negative and significant effect on the firm's business reputation. In other words, firms with higher market value are less likely to finance debt and borrowing. The findings of this study illustrate the effects of corporate value in developing countries, and the literature develops the area of influence of financing policies on corporate market performance. Accordingly, managers are advised to focus on improving the value of the company and try to improve the firm's position in the capital market.