Effect of Corporate Debt Convergence on Relationships of Macroeconomic Risks, Corporate Risks in Similar Industries, and Specific Risks of Companies with Capital Structure Adjustment Speed

In this study, the data of companies listed in the Tehran Stock Exchange were used to compare the effects of macroeconomic risks, corporate risks in similar industries, and specific risks of companies on the capital structure adjustment speed between convergent and non-convergent companies in terms of financial leverage. This study aims to determine whether the corporate debt convergence affects the roles of macroeconomic, industrial, and corporate risks in the capital structure adjustment speed. For this purpose, the data of the TSE-listed companies were collected concerning the 2015–2021 period. Firstly, convergent and non-convergent companies were differentiated using the method proposed by Philips and Soul (2007). The generalized method of moments (GMM) regression was then employed to estimate the results. According to the research results, macroeconomic risks and peers risks and specific risks of companies increases the capital structure adjustment speed, Furthermore, the effects of macroeconomic risks, peers risks, and specific risks of companies on adjustment speed of capital structure differentiated between converging and nonconverging firms.