International Journal of Finance & Managerial Accounting

International Journal of Finance & Managerial Accounting

A Paradigmatic Model of Investor Financing Decisions Considering Information Distortion

Document Type : Original Article

Authors
Department of Accounting, Ker.C., Islamic Azad University, Kermanshah, Iran
Abstract
By raising capital, corporate managers secure the necessary resources to finance projects with a positive net present value, taking into account the company's prevailing conditions; however, numerous factors influence this process. The aim of this study is to present a decision-making model for investors in the financing market—accounting for information distortion—based on a review of specialized literature and a consensus-based consultation with 20 experts conducted in the years 2025 and 2026. Findings from the grounded theory phase revealed the components of the investor decision-making model within the financing market: political/institutional uncertainty as the causal condition (encompassing policies, sudden regulatory changes, geopolitical tensions, and regulatory weaknesses); macroeconomic factors as the core phenomenon (representing interest rates, inflation, exchange rates, and economic growth); and informational and structural factors as strategies (reflecting information asymmetry, transaction costs, and market structure). Fundamental and financial factors represent the contextual conditions—including expected returns, risk, liquidity, and financial ratios. Sustainable development factors serve as intervening variables, encompassing environmental, social, governance, and economic elements. Behavioral and emotional factors—such as herd behavior, loss aversion, overconfidence, and market sentiment—represent the outcomes. Investment decisions made within a poor information environment require attention to a range of factors alongside potential risks.
Keywords

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Articles in Press, Accepted Manuscript
Available Online from 29 September 2026