Capital Structure Decisions and Determinants: An Empirical Study in Iran
Journal Title: International Research Journal of Applied and Basic Sciences - Year 2013, Vol 5, Issue 7
Abstract
The present study is aimed to investigate the determinants of capital structure of Iranian firms listed on Tehran Stock Exchange for the period between 2001 and 2010. A panel data set of 123 (1230 observation) companies for the 10 years period is collected from published annual reports of companies from Tehran Stock Exchange. The study explores the traditional financial theories (Trade-off theory and Pecking order theory) to investigate the determinants of capital structure. The variables of size, profit, growth, tangibility, and risk factors are included to represent the potential influence of traditional theories. The study analyzes the impact of the financial factors on the debt and equity structure of the Iranian firms.The results indicate that the size and risk are positively related to capital structure. In addition, profitability, growth and tangibility are negatively related to capital structure. The result of firm size is consistent with the trade-off theory and result of profitability is consistent with the pecking order theory.
Authors and Affiliations
Aiyoub Ahmadimousaabad| Financial Management, Faculty of Management, Universiti Teknologi Malaysia, 81310 Skudai, Johor, Malaysia. email: aiyuob151@yahoo.com, Melati Ahmad Anuar| Financial Management, Faculty of Management, Universiti Teknologi Malaysia, 81310 Skudai, Johor, Malaysia., Saudah Sofian| Financial Management, Faculty of Management, Universiti Teknologi Malaysia, 81310 Skudai, Johor, Malaysia., Agha Jahanzeb| Financial Management, Faculty of Management, Universiti Teknologi Malaysia, 81310 Skudai, Johor, Malaysia.
Keywords
Related Articles
- EP ID EP5973
- DOI -
- Views 253
- Downloads 8
A new slot patch Microstrip antenna with enhanced bandwidth for wireless communications
In this paper, a new slot patch antenna with enhanced bandwidth is proposed. The patch has a compact dimension of 70mm*70mm. The antenna was designed for operating in S band (2.75 – 3.5GHz) frequency range with a circula...
Examining the Effect of Electronic Information Transfer Strategy, Information Sharing, Communicating, Sending And Receiving Information on Improvement of Customs Output Port Clients (Case Study: West Azerbaijan Customs Office)
The aim of the present study was to examine the influence of applying new integrated information systems of management on improving customs output port clients. The statistical population comprised of all 445 employers w...
Participation of rural women in the agricultural sector and their impact on sustainable development (Case study of rural women in big part of Kashan city)
The main objective of this study is to investigate the agriculture activities of rural women particularly horticulture and their impact on village development and to identify risk factors (individual, family, organizatio...
The determinant cultural factors in compiling accounting standards
Culture, is the main effective factors on standards and accounting methods. Therefore, regarding to formulation of accounting standards, it is essential to know that how the culture of a country affects on accounting com...
The Impact of the Ninth and Tenth Government Policies on the Health and Treatment of the Peoples of Province Of Sistan and Baluchestan
Living conditions of the people is one of the most important factors that government must pointed to them because the hope people is related to selection the type of government that satisfaction their needs. This study u...