bu ali sina university Journal of Applied Economics Studies in Iran 2322-2530 12 45 2023 03 21 The Effects of Financialization on the Physical Investment of Non-Financial Companies Listed in Tehran Stock Exchange Over 1388-1398 Used Multilevel Panel Data The Effects of Financialization on the Physical Investment of Non-Financial Companies Listed in Tehran Stock Exchange Over 1388-1398 Used Multilevel Panel Data 47 78 4595 10.22084/aes.2022.25279.3381 FA Majid Haji Ph.D. student, Department of Economics, Faculty of Economics, Allameh Tabatabai University, Tehran, Iran. Ali Nasiri Aghdam Assistant Professor, Department of Economics, Faculty of Economics, Allameh Tabatabai University, Tehran, Iran Teymoor Mohammadi Professor, Department of Economics, Faculty of Economics, Allameh Tabatabai University, Tehran, Iran. Abbas Shakeri Professor, Department of Economics, Faculty of Economics, Allameh Tabatabai University, Tehran, Iran Journal Article 2021 12 19 One of the dangers of the growth of markets, institutions and financial instruments is their lack of support for investment in the real sector, which is referred to as the phenomenon of financialization, and since the early 1980s, there is growing evidence of its prevalence. The phenomenon has been reported in different countries. The purpose of this study is to evaluate the effect of financial financing on the real investment of non-financial corporations. Given the growth of financial markets in recent years on the one hand, and the significant difference in returns in this market compared to other markets on the other hand, the study of financial development in the Iranian economy and its impact on capital formation is very important. To assess this issue, the changes in real investment of non-financial companies listed on the Tehran Stock Exchange in the period 2009-2019 have been studied and its impact on financing indicators are estimated including cash dividends paid and non-operating income of the company. The strategy of this study in estimating the model is to use a multi-level panel data model and companies are divided into 4 levels and groups. One of the innovations of this study, in addition to the novelty of the subject, is the use of models based on multilevel panel data. In addition, by using the multi-level panel data model and dividing companies into 4 levels and groups, the effect of independent variables on the dependent variable of the model, means the real investment of non-financial companies is confirmed in each economic sectors and its subgroups as well as the type of ownership of listed companies. One of the dangers of the growth of markets, institutions and financial instruments is their lack of support for investment in the real sector, which is referred to as the phenomenon of financialization, and since the early 1980s, there is growing evidence of its prevalence. The phenomenon has been reported in different countries. The purpose of this study is to evaluate the effect of financial financing on the real investment of non-financial corporations. Given the growth of financial markets in recent years on the one hand, and the significant difference in returns in this market compared to other markets on the other hand, the study of financial development in the Iranian economy and its impact on capital formation is very important. To assess this issue, the changes in real investment of non-financial companies listed on the Tehran Stock Exchange in the period 2009-2019 have been studied and its impact on financing indicators are estimated including cash dividends paid and non-operating income of the company. The strategy of this study in estimating the model is to use a multi-level panel data model and companies are divided into 4 levels and groups. One of the innovations of this study, in addition to the novelty of the subject, is the use of models based on multilevel panel data. In addition, by using the multi-level panel data model and dividing companies into 4 levels and groups, the effect of independent variables on the dependent variable of the model, means the real investment of non-financial companies is confirmed in each economic sectors and its subgroups as well as the type of ownership of listed companies. https://aes.basu.ac.ir/article_4595_2f364281f619584f24f63a794a12e354.pdf