Relationship between foreign financing activities, earnings smoothing and stock price risk

The present study examines the relationship between external financing activities, earnings smoothing and the risk of falling stock prices. This research is applied in terms of purpose and in terms of methodology of correlation is causal (post-event). The statistical population of the study is all companies listed on the Tehran Stock Exchange and using the systematic elimination sampling method, 120 companies were selected as the sample of the research in a period of 6 years between 2012 and 2017. The method used to collect information is a library and the relevant data for measuring variables were collected from the Cadal site and the companies' financial statements. The results show that there is a significant inverse relationship between earnings smoothing and the risk of falling stock prices. However, there is a positive and significant relationship between foreign financing activities and the risk of stock price falls. Also, foreign financing activities have a direct and significant effect on the relationship between earnings smoothing and the risk of falling stock prices.