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
Related Articles
- EP ID EP7111
- DOI -
- Views 298
- Downloads 20
Influence of aerobic training on red cell antioxidants defense, plasma malondialdehyde capacity in patients multiple sclerosis
It has been reported that exercise induces oxidative stress and causes adaptation in antioxidants defense. The aim of this study was to determine the influence of aerobic training on red cell antioxidants defense, plasma...
The Change in Approach of the Higher Education Development Decision Making in Iran from Traditional Method to Systematic MethodBased on Information Technology
Currently, there exist plenty of issues and problems in the higher education development in Iran, from which the following items can be indicated: existence of a governmental and centralized structure and not benefiting...
The relationship between the competitive-trait anxiety and the rate of sports injuries in professional soccer players
Soccer as well as many other sports requires high levels of psychological skills. However, previous studies only examined the association between psychological factors as a whole (general) deal with sports injuries and i...
Weed interference on soybean performance by using integrated weed management and empirical model
A field experiment was carried out to investigate the efficacy of various weed control methods and johnsongrass (Sorghum halepense L.) water extract (SHWE) spray on soybean (Glycine max L. Merrill) yield, some morphologi...
The Relation between Organizational Culture and Organizational Trust in Customs Headquarters of Iran
This research is conducted with the goal of studying the relationship between organizational culture and organizational trust for the employees of customs headquarters. Research method of this study was correlation-type...