The Impact of the Performance of Knowledge-Based Companies on Their Financing Methods: A Panel Data Approach with Time-Varying Coefficients

Articles in Press

Document Type : Original Article

Authors

1 PhD student in economics, Islamic Azad University, Firozkoh, Iran

2 Associate Professor, Department of Economics, Islamic Azad University, Firozkoh, Iran

3 Assistant Professor, Department of Financial Management, Islamic Azad University, Amol, Iran

4 Assistant Professor, Department of Business Management, Firuzkoh Branch, Islamic Azad University, Firozkoh, Iran

10.22075/jem.2025.37313.2001

Abstract

One of the most critical factors in the growth and expansion of knowledge-based companies within the economy is access to appropriate financial resources. The primary objective of this study is to provide empirical evidence on the performance of knowledge-based firms in relation to three key financing methods: retained earnings, equity issuance, and debt financing. This is an applied research in terms of purpose, covering the period from 2011 to 2021. The models are estimated using a dynamic Bayesian time-varying coefficient panel data approach. The findings indicate that firm size has a positive effect on all types of financing; debt has a negative effect on most types of financing (except for equity issuance); and net fixed assets show a pattern of initial positive impact followed by a negative impact across all financing approaches. Additionally, the profitability-to-assets ratio initially exerts a positive influence on financing, which turns negative toward the end of the study period.

Keywords

Journal of Econometric Modelling

Articles in Press, Accepted Manuscript
Available Online from 02 September 2025

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