The Effect of the Financial Development of Listed Companies on the Growth of the Industry Sector in Isfahan Province

Zhila Saleki (), Saman Hatamerad () and Reza Ranjpour ()
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Zhila Saleki: Master’s Degree in Economic Systems Planning, University of Tabriz
Saman Hatamerad: Associate Professor, Department of Economics, Zanjan University
Reza Ranjpour: Professor, Faculty of Economics, and Management University of Tabriz

Quarterly Journal of Applied Theories of Economics, 2025, vol. 11, issue 4, 1-32

Abstract: The financial development of companies is a factor in attracting capital and a way for regional economic prosperity. Many indicators can be used to check the financial performance of companies. One of these indicators is the asset turnover index, which emphasizes both sales and company assets. This article aims to examine the financial development of important companies in creating the largest share of the added value of the province in terms of the growth of the industry's output. BACE and bootstrap quantile approach have been used to investigate the importance of the financial development of these companies on the output growth of the province's industry. In fact, modelling means choosing the model and variables which are uncertain. Therefore, the Bayesian averaging approach was initially used to reduce the concept of variable selection uncertainty to an acceptable level. After identifying the top 5 models and the most important effective variables, the quantile method was used to examine the effects of selected variables in high, medium and low growth on the model and their importance coefficients. To make estimates, the data of the desired industries were collected from 1389 to 1398 on a semi-annual basis. Based on the presented results, financial development with the help of improving asset turnover of Isfahan Pegah, Isfahan Zob Ahan, and Isfahan Polyacrylic companies affects the growth of Isfahan industry output. The financial development of Pegah Isfahan Company has had a negative relationship with the growth of the industrial output of Isfahan province. However, the financial development of iron smelting and polyacrylic companies have a positive relationship with the growth of the Isfahan province industry.

Keywords: BACE; stock market; quintile Bootstrap (search for similar items in EconPapers)
JEL-codes: E22 F21 K23 (search for similar items in EconPapers)
Date: 2025
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