Application of value changes method analysis in the determining of capital structure: a study of Iranian listed firms
Journal Title: International Research Journal of Applied and Basic Sciences - Year 2015, Vol 9, Issue 9
Abstract
Decision making about capital structure and achieving the optimal capital structure is one of the most difficult issues and important decisions in financial sector for saving company’s life. So in this research, determining of optimal capital structure by analysis of value changes had been done on 112 companies in Tehran stock exchange for period 2008-2013. In this study, some factors such as size, profitability, business risk, non-debt tax shield and assets tangibility accepted independent variables and debt ratio(capital structure as a ratio of total debt to the total debt and market value of equity) accepted as a dependent variable in the form of multi regression model according to experimental data is tested. Data panel unit and Limer-F test and Hausman test and Fixed effects test shows that in the analysis of value changes method, size variable has positive and meaning full effect on debt ratio and non-debt tax shield, business risk, profitability and assets tangibility has negative and meaningful effects on it. Then by Econometric means and Excel, estimated optimal capital structure by method of value changes analysis.
Authors and Affiliations
Mehrdad Ghanbari| Department of Accounting, Kermanshah Branch, Islamic Azad University, Kermanshah, Iran, Mojtaba Chavoshani| Department of Accounting, Ghasr-e-Shirin Branch, Islamic Azad University,Ghasreshirin, Kermanshah, Iran
Keywords
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