University of TehranIranian Economic Review1026-654230120260301Valuing Men’s Preferences Regarding Military Service Using the Discrete Choice Experiment1239593810.22059/ier.2024.360793.1007745ENMohammad HosseinFatemiFaculty of Economics, University of Tehran, Tehran, Iran.AliTaiebniaFaculty of Economics, University of Tehran, Tehran, Iran.MohsenMehraraFaculty of Economics, University of Tehran, Tehran, Iran.Journal Article20230613The main concern of this research is to examine military service from the perspective of individual preferences. The study aims to determine the most important factors affecting individual utility in military service by evaluating preferences regarding attributes of military service in Iran using a discrete choice experiment. Location, department, type, salary, and period of service (length) are the attributes of military service under the conditions in Iran. The results of the model indicate that the location of service was the most important attribute for individuals, followed by type, salary, length, and department. The individuals in question were willing to pay up to 570 USD to serve in their own city and 174 USD to serve for three months less. The results indicate that the most effective measure in reducing the disutility of military service is to avoid moving people from the city of residence for service. The results also showed that experiencing military service will not affect preferences regarding the ranking of attributes.https://ier.ut.ac.ir/article_95938_63d672e428c31aab4dc2355c53c383df.pdfUniversity of TehranIranian Economic Review1026-654230120260331Global Research Trends in Fintech Technologies and Financial Fraud: A Bibliometric Analysis24539605510.22059/ier.2024.368241.1007852ENRituWadhwaAmity Business School, Amity University, Sector 125, Noida, Uttar Pradesh, India.0000-0002-9712-5787PurwaSrivastavaJaypee Institute of Information Technology, Humanities and Social Science Department, Sector -62, Noida, Uttar Pradesh, India.Journal Article20231116Growing usage of Fintech on one hand has opened new ways of financial transactions but on the other hand has led to new methods of frauds and money laundering. Recent literature has attracted considerable attention in this direction. This paper provides a bibliometric view of recent advances in Fintech and related fraud. Scopus indexed research papers over the last two decades are taken into consideration. The paper informs and directs researchers on the current state of study and provides future research directions.https://ier.ut.ac.ir/article_96055_822a77f9a56dab9264e7e624fb24b44c.pdfUniversity of TehranIranian Economic Review1026-654230120260301Job Status and Productivity Imparity: Lessons Learned from the Indonesian Workers54839843610.22059/ier.2024.355692.1007649ENPadangWicaksonoDepartment of Economics, Faculty of Economics and Business, University of Indonesia, Depok, Indonesia.Vindaniar YuristamandaPutriDepartment of Finance and Banking Administration, Vocational Education Program, University of Indonesia, Depok, Indonesia.0000-0002-8300-7827NoviUtamiDepartment of Economics, Faculty of Economics and Business, University of Indonesia, Depok, Indonesia.Journal Article20230328This study analyzes the effect of workers' transition from contract to permanent employment status on work productivity. Contract employment is a non-standard employment relationship that is prevalent in many countries, including Indonesia. Contract workers generally have weaker work protection guarantees and lower wages than permanent workers. Consequently, most contract workers are motivated to perform at their best to be appointed as permanent workers. The Indonesia Family Life Survey (IFLS) waves 4 and 5 provide data on employment status transitions, which can serve as a proxy for changes in productivity. The unit of analysis in this study is workers aged 22-64 years in IFLS 5 who were permanent employees at that time. The standard Tobit regression results indicate that the transition from contract to permanent status was negatively associated with the productivity of permanent workers in 2014. The effect of changing employment status becomes smaller after being controlled by individual and job characteristics variables. We find evidence that the controlled variables—education, health status, stress level, job satisfaction, wage, and business sector—are significantly associated with workers' productivity in Indonesia. Good health conditions can reduce the likelihood that workers will not attend work. The empirical findings in this study indicate that the most important thing for workers is not their employment status but the company's sustainability and financial security for the workers themselves in the long term.https://ier.ut.ac.ir/article_98436_6e2408051e802be99807f43df68195fd.pdfUniversity of TehranIranian Economic Review1026-654230120260301Socioeconomic and Demographic Factors and Access to Legal Assistance in Indonesia841009637010.22059/ier.2024.368431.1007857ENWilsonRajagukgukReligious Education Doctoral Program, Graduate Program, Universitas Kristen Indonesia, Jakarta, Indonesia.Omas BulanSamosirDepartment of Economic Science, Faculty of Economic and Business, Universitas Indonesia, Jakarta, Indonesia.PerakSamosirStudy Program of Mechanical Engineering, Institut Teknologi Indonesia, Tangerang Selatan, Banten, Indonesia.Journal Article20231120Access to legal assistance is still limited in Indonesia. This study aims to investigate the link between socioeconomic and demographic factors and access to legal assistance in Indonesia. Data are drawn from the 2021 National Socioeconomic Survey (SUSENAS). The analysis focuses on individuals aged 15 years and above who have ever experienced a crime and reported it to the police. The dependent variable is whether a person receives legal assistance during and after reporting a crime to the police. Independent variables include gender, age, marital status, education, place of residence (urban/rural), island of residence, and employment status. A binary logistic regression model is employed to examine the effects of the independent variables on the dependent variable. The results indicate that a higher probability of receiving legal assistance is associated with being female, aged 15-29 years, unmarried, having completed senior high school, living in rural areas, residing outside Sumatra, and being employed. The findings highlight the need to improve access to legal assistance, particularly for males, older individuals, married persons, those with little or no formal education, urban dwellers, Sumatran residents, and the unemployed.https://ier.ut.ac.ir/article_96370_ac1dacb51e1f0b3abec0f156a374a99c.pdfUniversity of TehranIranian Economic Review1026-654230120260301‘The Financial Resources Curse’ Hypothesis in Iraq: Application of ARDL and NARDL Models1011399605710.22059/ier.2024.367447.1007836ENMajidAghaeiFaculty of Economics & Administrative Science, University of Mazandaran, Mazandaran, IranMahdiehRezagholizadehFaculty of Economics & Administrative Science, University of Mazandaran, Mazandaran, IranMohammadAbdi SeyyedkolaeeFaculty of Economics & Administrative Science, University of Mazandaran, Mazandaran, IranRawaMosaviFaculty of Economics & Administrative Science, University of Mazandaran, Mazandaran, IranJournal Article20231031In this study, we investigate the relationship between financial development and natural resource rents, examining the 'Financial Resource Curse' hypothesis. This examination is conducted separately for the banking system, the stock market, and the overall financial system in Iraq. The study covers the period from 1990 to 2021 and utilizes annual data sourced from the World Bank. Our analysis employs ARDL and NARDL models to estimate the relationships between these variables, and the DOLS estimator is used to ensure the robustness of the results. Our findings reveal a significant, negative, and statistically significant effect of resource rents on the development of Iraq's banking sector and its financial system as a whole. This outcome supports the 'Financial Resource Curse' hypothesis for these sectors in Iraq during the study period. However, the relationship between resource rents and the stock market development index is not statistically significant, making it difficult to draw conclusions regarding the existence of the financial resource curse in the stock market. Furthermore, improved institutional quality had a positive and statistically significant impact on financial development in both the banking and stock market sectors of Iraq during the study period. The Corruption Index also shows a positive and statistically significant long run effect on banking sector development, supporting the Grease the Wheels Hypothesis. However, it has a negative impact on the development of the stock market and the financial system.https://ier.ut.ac.ir/article_96057_170178b70a49f81c7f93f3d3423c22e4.pdfUniversity of TehranIranian Economic Review1026-654230120260331Evaluating N-Shaped Environmental Kuznets Curve for Economic Growth, Globalization, and Investment Flows in India: An ARDL Bound Test Approach1401759605610.22059/ier.2024.370515.1007908ENRinkuManochaDepartment of Commerce, Hindu College, University of Delhi, Delhi -110007, India.Journal Article20240103India introduced globalization and liberalization measures in 1991 that supported FDI inflows and encouraged massive industrialization. Simultaneously, in the last few decades, India has experienced an upsurge in carbon emissions. Weaker environmental norms might be positioning India as a sought-after destination for production units that are environmentally hazardous. Hence, the present study is an attempt to empirically evaluate whether an upsurge in industrialization, investment inflows, and globalization has been detrimental to India's environment. The study employs the N-shaped EKC hypothesis (for India) to capture the association between carbon emissions and GDP per capita, carbon emissions and FDI inflows, and carbon emissions and globalization, using three different model specifications with time series data for the period 1991–2021. Unit root testing was conducted using the ADF and PP tests to examine stationarity, and the ARDL bounds test was employed to validate the long-run results. The results for the CO₂–GDP per capita model weakly supported the presence of an N-shaped EKC, whereas the outcomes for the CO₂–FDI inflows model strongly endorsed the N-shaped curve for India. The results for the CO₂–globalization model supported the N-shaped EKC, but only for the long-run coefficients. The results indicate that strong policy measures are required, particularly to address India's FDI inflows, as India is likely to face environmental deterioration after reaching the trough point.https://ier.ut.ac.ir/article_96056_3823342cdc8e15005706a56db0a1467b.pdfUniversity of TehranIranian Economic Review1026-654230120260301Regional Trade Arrangements and Optimal Tariff Calculation according to Armington Hypothesis1762059592410.22059/ier.2024.358207.1007697ENEbrahimAnvariDepartment of Economics, Faculty of Economics and Social Science, Shahid Chamran University of Ahvaz, Ahvaz, Iran.0000-0002-6050-8645HassanFarazmandDepartment of Economics, Faculty of Economics and Social Science, Shahid Chamran University of Ahvaz, Ahvaz, Iran.AhmadSalahmaneshDepartment of Economics, Faculty of Economics and Social Science, Shahid Chamran University of Ahvaz, Ahvaz, Iran.SoroorChehrazi MadresehDepartment of Economics, Faculty of Economics and Social Science, Shahid Chamran University of Ahvaz, Ahvaz, Iran.Journal Article20230423Disciplined international competition and formal agreements worldwide would potentially prevent the mistakes of domestic policies, thereby resulting in more stable economic growth. This article aims to investigate the results of concluding agreements between the regional countries, especially regarding the Iraqi market as a target market, using a Computable General Equilibrium (CGE) Model. To this end, the model parameters were calibrated, and then different aspects of concluding the agreement were examined. The welfare effects were investigated by estimating the competitive equilibrium model. Next, the simulation results were analyzed according to the non-cooperative Nash equilibrium model by considering the interaction of countries and the methods of weighted coefficients and LP-Metric using GAMS software. The results indicate that concluding a regional agreement, in terms of welfare according to the general equilibrium model using the Armington hypothesis, would have the best possible result when the agreement is concluded between Iran, Turkey, and Iraq. The results of the scenario using the Nash tariff war to create trade rules with non-member countries also revealed that the welfare situation of countries is far worse compared to the competitive equilibrium. It was also found that the welfare level achieved by concluding an agreement between all the studied countries was as low as possible compared to other scenarios of the present study.https://ier.ut.ac.ir/article_95924_da48e60890e1b2834ac037bd96dc097d.pdfUniversity of TehranIranian Economic Review1026-654230120260331The Optimal Level and Demand for International Reserves in Iran: An Optimization Formula and Monetary Disequilibrium2062329594110.22059/ier.2024.367692.1007839ENSamanehJavaherdehiFaculty of Economics and Political Science, University of Shahid Beheshti University, Tehran, Iran.MasoudAbdollahi MobarakehBusiness Cycles, Growth and Public Finances, Institute for Advanced Studies, Vienna, Austria.HosseinSamsamiFaculty of Economics and Political Science, University of Shahid Beheshti University, Tehran, Iran.RobertKunstBusiness Cycles, Growth and Public Finances, Institute for Advanced Studies, Vienna, Austria.Journal Article20231106Due to the role of international reserves in eliminating disequilibrium in the balance of payments and the foreign exchange market, and their interaction with the money market, we try to answer two main questions regarding international reserves by focusing on the precautionary and monetary approaches. For this purpose, the paper is divided into two sections. In the first section, adapted to the Iranian economy, we present an optimization model based on utility maximization to calculate the optimal level of international reserves against sudden stops in capital inflows. Based on annual data for 1974–2021, the optimal ratio is about 10.5% of GDP per year in the basic scenario. In the second part, we examine the determinants of international reserves (IR). Applying the Autoregressive Distributed Lag (ARDL) technique, the results confirm that an excess of money demand (supply) causes an inflow (outflow) of IR, as postulated by the monetary approach to the balance of payments. According to the precautionary approach, adjustment costs and external debt positively affect the demand for IR. Furthermore, due to the conditions of the Iranian economy and the central bank's intervention in the foreign exchange market, as the exchange rate increases, the volume of IR decreases.https://ier.ut.ac.ir/article_95941_e649f9bc028ff65de8c4c1fefb3a6eeb.pdfUniversity of TehranIranian Economic Review1026-654230120260301Economic and Environmental Consequences of Internal and External Shocks in Net Oil-importing and Exporting Economies: A Structural VAR2332729686110.22059/ier.2024.363533.1007778ENShimaSangsariFaculty of Economics, University of UKM, Selangor, Malaysia; Faculty of Economics, Allameh Tabataba’i University, Tehran, Iran.MohammadSayadiDepartment of Energy Economics & Resources, Faculty of Economics, Kharazmi University, Tehran, Iran.Mohammad RezaAriafarDepartment of Resource and Energy Economics, Faculty of Economics and Administrative Sciences, Ferdowsi University of Mashhad, Mashhad, Iran.0009-0001-7643-103XJournal Article20230813The main aim of our research is to use a structural vector autoregressive (SVAR) analysis to examine the effects of various shocks (oil price, exchange rate, money supply, and interest rate) on inflation and economic growth in selected net oil-exporting (NOE) and net-oil importing (NOI) countries. It also explores the implications of these shocks for efforts to reduce carbon emissions. The study finds that supply shocks, such as oil price fluctuations, significantly affect inflation and economic growth in most NOE and NOI countries. In contrast, demand shocks primarily affect inflation fluctuations and contribute to output fluctuations in most of these countries. Additionally, it is observed that in most NOE and NOI countries, except Morocco and Jordan, inflation rates respond positively and significantly to global oil price shocks, while GDP reacts negatively to positive exchange rate and pollution shocks. On the other hand, domestic inflation reacts negatively to exchange rate shocks in NOE-4 and NOI countries. Our research contributes to a better understanding of the macroeconomic effects of external and internal shocks (oil price, exchange rate, money supply, and interest rate) in NOE and NOI countries. Moreover, the research highlights the implications of these shocks for efforts to reduce carbon emissions in these countries, emphasizing the importance of understanding their macroeconomic effects.https://ier.ut.ac.ir/article_96861_e51d63f3a43f086fca44823d87fe0be1.pdfUniversity of TehranIranian Economic Review1026-654230120260331Unravelling the Complexities of Agricultural Productivity in Pakistan: A Focus on Determinants2732969594210.22059/ier.2024.365200.1007808ENZunairaZahoorCenter for Economic Planning and Development, Minhaj University Lahore, Pakistan.KhurramShahzadSchool of Economics of Economics, Minhaj University Lahore, Pakistan.Atta UlMustafaInternational Center for Research in Islamic Economics, Minhaj University Lahore, Pakistan.Journal Article20230912This study seeks to investigate the relationship between rainfall, temperature, environmental change, agricultural credit, and total factor productivity, all of which affect agricultural productivity in Pakistan from 1990 to 2020. To estimate the data, we apply the unit root test to investigate stationarity, and it is determined that some variables are and others are . Then, the ARDL model is used to examine the long-run and short-run effects. Our empirical findings indicate that agricultural credit, temperature, and total factor productivity positively and significantly affect agricultural output in the short and long run, helping to boost productivity. In addition, rainfall and environmental change have adverse and significant short- and long-run effects on agricultural productivity. Stability experiments have confirmed the model's stability. The study concludes that it is necessary to introduce seed and crop varieties that are more resistant to rainfall and environmental change. In addition, greater emphasis should be placed on research and development.https://ier.ut.ac.ir/article_95942_d081c5f18ddc3a7bb40dc6fbce9bfdc5.pdfUniversity of TehranIranian Economic Review1026-654230120260331Assessing the ESG Sustainability Strategy of Gazprom Group through the Dynamic Standard Model (DSM)2973189619910.22059/ier.2024.360252.1007737ENElnurMekhdievDepartment of World Economy and Global Finance, Financial University under the Government of the Russian Federation (Financial University), Moscow, Russian Federation.IgbalGulievThe School of Financial Economics, Moscow State Institute of International Relations (University) of the Ministry of Foreign Affairs of the Russian Federation (MGIMO University), Moscow, Russian Federation.FedorArzhaevInstitute for Research of International Economic Relations, Financial University under the Government of the Russian Federation (Financial University), Moscow, Russian Federation.AlexanderBondarenkoDepartment of Social and Political Communications, Ufa State Petroleum Technical University; Ufa University of Science and Technology, Ufa, Russian Federation.Journal Article20230719In modern conditions of instability and complexity in forecasting, methods whose application is associated with a clear understanding of the results are undoubtedly relevant. Such methods are most often mathematical, and one of the most underestimated among them is the dynamic standard method. Its application largely helps avoid the problems of subjectivity and value judgments. In addition, it allows the formation of a long-term adaptive strategy that not only meets forecasting tasks but also enables planning for the future development of the phenomenon. The ESG indicator system is particularly relevant today and is used to assess the investment attractiveness and functioning of enterprises. The energy sector is often heavily influenced by this reporting system. Due to recent events and the global imbalance in energy markets, the importance of planning and understanding the effects of ESG reporting on production activities has become a priority. Indicators of sustainable development underlie several investment criteria and non-tariff export restrictions. The main purpose of the study is to systematize sustainable development indicators using Gazprom Group as an example for the period from 2018 to 2020 and to identify problems and areas for improving the ESG indicator system within the company. The main results indicate the low effectiveness of the ESG strategy of Gazprom Group and show that the investment effectiveness of measures taken in the ecological and social pillars is low and slightly higher in the governance pillar.https://ier.ut.ac.ir/article_96199_df5f300d9439127c9a30d35d6be09851.pdfUniversity of TehranIranian Economic Review1026-654230120260331Evaluating the Economic Prerequisites of Environmental Risk in the International Hamoun Wetland: A Fuzzy SAW and GRA Approach3193439657310.22059/ier.2024.367195.1007832ENMahboubehOveisiDepartment of Agricultural Economics, Faculty of Economics and Administrative Sciences, University of Sistan and Baluchestan, Zahedan, Iran.AliSardar ShahrakiDepartment of Agricultural Economics, Faculty of Economics and Administrative Sciences, University of Sistan and Baluchestan, Zahedan, Iran.MahmoodHashemitabarDepartment of Agricultural Economics, Faculty of Economics and Administrative Sciences, University of Sistan and Baluchestan, Zahedan, Iran.MahmoodMohhamadGhasemiDepartment of Economic, Social and Extension Research, Sistan Agricultural and Natural Resources Research and Education Center, AREEO, Zabol, Iran.Journal Article20231028A primary component of nature is wetlands, which are of special ecological and environmental importance and are valuable for people in different aspects. On the other hand, environmental risk assessment is an important instrument to identify and manage the environment and alleviate environmental damage in order to reduce the adverse results for achieving sustainable development. The present research aimed to evaluate and rank the environmental risks of the International Hamoun Wetland in the Sistan region using fuzzy simple additive weighting (fuzzy SAW) and grey relational analysis (GRA). The research was conducted by the survey method using a questionnaire by which 50 experts from the Regional Agriculture and Natural Resources Organization were interviewed. Based on the ranking by the fuzzy SAW method, the economic factor received the highest score of 4.91, followed by the cultural, biological, and social factors. The GRA results also ranked the economic factor at the top with a final weight of 0.62, followed by the cultural, biological, and social factors in the next ranks. The local communities and the Department of Environment are recommended to cooperate for the protection and restoration of the Hamoun Wetland in order to restore balance to this wetland using the Comprehensive Hamoun Management Program.https://ier.ut.ac.ir/article_96573_b2669f99a05c97a394f1eb52b9a870db.pdfUniversity of TehranIranian Economic Review1026-654230120260331A Pathway for Infrastructure Progress in Sub-Saharan African Countries: Physical and Social Capital Perspectives3443709613210.22059/ier.2024.372333.1007930ENAfees OluwashinaNoahDepartment of Economic Sciences/Faculty of Economic and Management Sciences, North-West University, Vanderbijlpark, South Africa.Oladipo OlalekanDavidDepartment of Economic Sciences/Faculty of Economic and Management Sciences, North-West University, Vanderbijlpark, South Africa.Journal Article20240107The basic functions and human activities of modern society would be significantly more difficult in the absence of critical infrastructure, given its economic importance. This study, therefore, investigates the drivers of infrastructure development in Sub-Saharan Africa. The estimations were conducted using static panel estimation methodologies on a panel of 43 selected SSA nations from 2000 to 2022. The infrastructure development was built using principal component analysis to generate a composite infrastructure index that includes six indicators. The study further breaks this into physical and social infrastructure indices and examines the differential effects of explanatory variables on them. The empirical results show that improvement in financial development, per capita GDP, governance, population density, and urbanization improve infrastructure development, physical and social infrastructure. Total government capital expenditure positively influences both infrastructure development and physical infrastructure, and a high literacy rate improves social infrastructure. From the theoretical implications of infrastructure development that are still in a formative state, evidence from the present study shows that infrastructure development responds positively to GDP (output level). This provides some useful insights into the validity of the adopted theory (accelerator theory of investment) as a theoretical foundation for infrastructure development. It is therefore recommended that SSA countries ensure that necessary policies are put in place to boost their per capita GDP, level of domestic financial development, and institutional quality to promote the development of infrastructure, among others.https://ier.ut.ac.ir/article_96132_9c2a98a13bb137554ddf22165d8553cd.pdfUniversity of TehranIranian Economic Review1026-654230120260331Strategic Analysis of Russia -European Union Gas Relations: An Evolutionary Game Theory Approach3713989656710.22059/ier.2024.371343.1007919ENSaeedRasekhiDepartment of Energy Economics, Faculty of Economics and Administrative Science, University of Mazandaran, Mazandaran, Iran.Ali AkbarJafariDepartment of Political Sciences, Faculty of Law and Political Science, University of Mazandaran, Mazandaran, Iran.RoyaSaediDepartment of Economics, Faculty of Economics and Administrative Science, University of Mazandaran, Mazandaran, Iran.Journal Article20240123The Russia–European Union relationship affects their energy ties, specifically in the natural gas trade. The changes in their gas relations, from the energy dialogue in October 2000 to recent gas interruptions and the REPowerEU plan in 2022, show a shift from neoliberal toward realist–geopolitical relations. Employing evolutionary game theory, this study has analyzed the evolution of gas trade strategies within the framework of the political relations of these two players. The study examines strategic equilibrium in energy relationships to determine whether realism will persist or shift toward liberal energy equilibrium. During the assessment of Russia–EU energy, three strategies were identified. Their first strategy is based on liberal cooperation (EU and CO), the second shows economic cooperation but with an element of security competition (RC and ER), and the last involves mutual avoidance (CH and ES). We define a 3×3 game with symmetrical payoffs in two liquefied natural gas market scenarios: current status and the possibility of further expansion. Initial game results show a mixed equilibrium, which is unstable and can change in the long run. The second game's outcome (second scenario) shows a pure equilibrium in mutual cooperation that is also unstable and short-term. Based on the outcomes of these two games, Russia and the European Union cannot always rely on mutual cooperation in gas trade, so government agencies, security issues, and realistic approaches will continue to play a role in their gas policy decisions, with varying degrees of impact.https://ier.ut.ac.ir/article_96567_17d6ea610ffb1fbf10d1a00002040aff.pdfUniversity of TehranIranian Economic Review1026-654230120260331Macro and Micro Fundamentals, Investment Opportunities, and Capital Structure on Company Value with Business Risk and Financial Performance as Mediation3994249656810.22059/ier.2024.370239.1007899ENJuwitaAprilliaUniversity of 17 August 1945 Surabaya, Jawa Timur 60118, Indonesia.TriRatnawatiUniversity of 17 August 1945 Surabaya, Jawa Timur 60118, IndonesiaSlametRiyadiUniversity of 17 August 1945 Surabaya, Jawa Timur 60118, IndonesiaJournal Article20240103The purpose of this study is to analyze and understand the influence of macro fundamentals, micro fundamentals, investment opportunity set, and capital structure on company value, with business risk and financial performance as mediating variables, and financial flexibility as moderating variables, in construction companies listed on the Indonesia Stock Exchange. The population used in this study includes all construction companies in Indonesia, particularly those listed on the Indonesia Stock Exchange. In this study, the sampling technique used was non-probability with a comprehensive sampling approach (census). The sample for this study consists of 30 construction companies listed on the Indonesia Stock Exchange from 2018 to 2022. This research uses secondary data or information processed with statistical methods and PLS software. The data analysis method used is Partial Least Square (PLS). The results showed that macro and micro fundamental factors did not have a significant and opposite influence on the business risk of construction companies listed on the Indonesia Stock Exchange. Meanwhile, the Investment Opportunity Set tended to have an insignificant negative impact on business risk, while the capital structure had a significant positive impact. Regarding financial performance, micro fundamental factors had a significant positive influence, while macro fundamentals were not significant. The Investment Opportunity Set and capital structure did not have a significant effect on the financial performance of construction companies. In addition, these factors did not have a significant effect on the value of the company.https://ier.ut.ac.ir/article_96568_581a369de13c09292eb8917f9dedd8a2.pdf