Development of Business Internationalization, Commercial and Financial Risk, and Capital Structure Reversibility
Subject Areas : Economic
hosna jahangasht
1
,
Ali Khozein
2
,
mansour garkaz
3
,
Hosein Aryaeinezhad
4
1 - Department of accounting, Go.C., Islamic Azad University, Gorgan
2 - Department of Accounting, Ali.C., Islamic Azad University, Aliabad Katoul, Iran
3 - Department of accounting, Go.C., Islamic Azad University, Gorgan, Iran
4 - Department of accounting, Go.C., Islamic Azad University, Gorgan
Keywords: Business, Capital Structure, Internationalization, Reversibility, Risk.,
Abstract :
This study examines how the process of business internationalization affects financial and commercial risk and the reversibility of capital structure. Internationalization, which includes activities such as exporting, importing, financing, foreign investment, and participation in global value chains, can significantly change the financial and operational landscape. The present study is applied in terms of purpose and descriptive and correlational in terms of data collection method. Data were collected by questionnaire from a sample of 400 financial managers and senior accountants of Iranian companies in 2025. The findings of the study showed that business internationalization increases commercial risk and the speed of capital structure reversibility and has a reducing effect on financial risk. Financial risk also reduces the reversibility of capital structure. Entering global markets can lead to different effects on risk. Companies that successfully develop internationally gain greater flexibility by diversifying their income sources and markets, reducing their financial risk and increasing the speed of capital structure reversibility, although environmental and political changes will have a greater impact on increasing their commercial risk. Success in this field depends heavily on development strategies, risk management, the ability to absorb external shocks, the speed of response to market changes, and effective access to financial and human resources. While internationalization has the potential to increase risk, if properly managed, it can lead to significant improvements in financial flexibility and capital structure resilience.
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