"Islamic Finance Researches" (IFR)

Investigating the Factors Affecting the Foreign Financing of Knowledge-Based Companies Under Iran Sanctions

Document Type : Science - Research (Islamic Financing Tools)

Authors

1 Assistant Professor, Department of Economics and Islamic Banking, Faculty of Economics, Kharazmi University, Tehran, Iran

2 M.A. Economics, Faculty of Economics, Kharazmi University, Tehran, Iran

Abstract

Financing refers to the process of concentrating financial resources or capital in the medium and long term. The purpose of economic sanctions is to deprive an economy from benefiting from the global markets of goods, services and capital. Today, the topics related to the types of project financing contracts are important topics in international economy and financial management. Considering the political conditions of the country as well as economic sanctions, the risk of investing in the country is high. In this study, the influencing factors on the ways of foreign financing in the conditions of Iran sanctions have been investigated using Structural Equation Modeling (SEM) based on Partial Least Squares (PLS). The results show that legal reforms, solutions to overcome the sanctions, financial incentives granted by the host country, financial incentives granted by capital exporting countries, investment in the stock portfolio, reducing the risk of investment in the country, long-term, medium-term and short-term economic factors, political and security factors. Among managers and experts, it has an effect on foreign financing in the conditions of sanctions.

Keywords

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Volume 12, Issue 2 - Serial Number 24
February 2023
Pages 425-472
  • Receive Date: 16 January 2023
  • Revise Date: 23 August 2023
  • Accept Date: 01 July 2023