STUDY OF THE IMPACT OF FINANCIAL STRUCTURE, FINANCIAL LEVERAGE AND PROFITABILITY ON COMPANIES SHARES VALUE (A STUDY CASE: TEHRAN STOCK EXCHANGE LISTED COMPANIES, IRAN)
Abstract
The main purpose of this study is investigate of the effect of financial structure, financial leverage and profitability on company’s value among the firms listed on Tehran's stock exchange between 2010 and 2014. In this study, the data were collected by using of various sources based the official documents on Tehran's stock exchange, including the Tadbirpardaz and Rahavard Novin software have been used for calculation of dependent research variables have been used for calculation of dependent research variables. Nonetheless, data belonging to firms have been reviewed through investigation of journals, disks that are provided by the stock exchange organization and the website of Tehran stock services and also reports published by Tehran's organization of stock exchange. Which was processed after moving to the EXCEL spreadsheet, and using was of data analysis by combined data method. Results have shown that the variable of financial structure has no statistically significant effects on company’s value. Results of the study regarding, there is a positive relationship between financial leverage and profitability on company’s value.
Article visualizations:
Keywords
References
Abor, J. (2007). Capital structure and financing of Smes: empirical evidence from Ghana and South Africa. Unpublished Ph. D, University of Stellenbosch.
Ebaid, I. E. -S. (2009). The impact of capital-structure choice on firm performance: empirical evidence from Egypt. Journal of Risk Finance, 10 (5), 477-487.
Evidence from South Africa. The Quarterly Review of Economics and Finance, 53 (2), 140-151.
Modigliani, F. and M. Miller. (1963). Corporate Income Taxes and the Cost of Capital: A Correction. The American Economic Review, 53 (3), 433-443.
Fama, E. F. and K. R. French. (1992). the cross-section of expected stock returns. The Journal of Finance, 47 (2), 427-465.
Fama, E. F. and K. R. French. (2002). Testing Trade‐Off and Pecking Order Predictions about Dividends and Debt. The Review of Financial Studies, 15 (1), 1 -33.
Fosu, S. (2013). Capital structure, product market competition and firm performance.
Muzir, E. (2011). Triangle Relationship among Firm Size, Capital Structure Choice and Financial performance. Journal of Management Research, 11 (2), 87-98.
Rajan, R. G. and L. Zingales. (1995). What Do We Know about Capital Structure? Some Evidence from International Data. The Journal of Finance, 50 (5), 1421-1460.
Salim, M. and R. Yadav. (2012). Capital Structure and Firm Performance: Evidence from Malaysian Listed Companies. Procedia - Social and Behavioral Sciences, 65, 156-166.
Varun Dawar, (2014), "Agency theory, capital structure and firm performance: Some Indian evidence", Managerial Finance, 40 (12), 1-25.
Zeitun, R. and G. G. Tian. (2007). Capital structure and corporate performance: evidence from Jordan. The Australasian Accounting Business & Finance Journal, 1 (4), 40-61.
DOI: http://dx.doi.org/10.46827/ejefr.v0i0.137
Refbacks
- There are currently no refbacks.
Copyright (c) 2018 Maryam Karimi, Mohammad Kheiri
This work is licensed under a Creative Commons Attribution 4.0 International License.
The research works published in this journal are free to be accessed. They can be shared (copied and redistributed in any medium or format) and\or adapted (remixed, transformed, and built upon the material for any purpose, commercially and\or not commercially) under the following terms: attribution (appropriate credit must be given indicating original authors, research work name and publication name mentioning if changes were made) and without adding additional restrictions (without restricting others from doing anything the actual license permits). Authors retain the full copyright of their published research works and cannot revoke these freedoms as long as the license terms are followed.
Copyright © 2016 - 2023. European Journal of Economic and Financial Research (ISSN 2501-9430) is a registered trademark of Open Access Publishing Group. All rights reserved.
This journal is a serial publication uniquely identified by an International Standard Serial Number (ISSN) serial number certificate issued by Romanian National Library. All the research works are uniquely identified by a CrossRef DOI digital object identifier supplied by indexing and repository platforms. All the research works published on this journal are meeting the Open Access Publishing requirements and standards formulated by Budapest Open Access Initiative (2002), the Bethesda Statement on Open Access Publishing (2003) and Berlin Declaration on Open Access to Knowledge in the Sciences and Humanities (2003) and can be freely accessed, shared, modified, distributed and used in educational, commercial and non-commercial purposes under a Creative Commons Attribution 4.0 International License. Copyrights of the published research works are retained by authors.