Structural Equation Approach in Three-Level Analysis of Financial Distress in Listed Companies in Tehran Stock Exchange

Financial distress analysis is considered as an important phenomenon for investors, creditors and other users of financial information. Determining the factors affecting the probability of a company’s financial distress before occurrence of the distress is considered a very interesting and attractive issue and can be useful for managers and investors and creditors. In this study, using the information of 1488 year/companies during the period 2011 to 2016 in Iranian stock market, and through structural equations approach and simultaneous use of Iranian and global models and PLS software programs, the factors affecting financial distress have been investigated. The results of the research indicate the significant impact of risk criteria and corporate governance, compared to financial and accounting performance criteria and macroeconomic variables, on financial distress.