FINANCIAL CRISIS AND FINANCIAL PERFORMANCE: CASE STUDY

The aim of the present study is to investigate the relationship between financial crisis and financial performance. This study was conducted in Mazandaran, a Northern Province of Iran. 500 companies were selected as the statistical population of the study. According to Krejcie and Morgan (1970), the minimum number of sample size was determined as 217 companies. A total of 300 questionnaires were distributed among the companies and 250 usable questionnaires were returned. The research method used for this study is descriptive-correlation. Further, the analysis was carried out utilizing Structural Equation Modeling (SEM) methodology by LISREL 8.8 software. The factors analysis and the findings show that financial crisis has a significant negative influence on financial performance of Iranian companies (Path Coefficient: -0.5, t-value: -5.69). The results of the current study imply that high level of financial crisis (Mean: 4.5070) results in unsatisfactory level of financial performance (Mean: 1.6360) in Iranian companies.