Study of the Relationship between Capital Structure and Return on Assets and Return

Journal Title: Journal of Science and today’s world - Year 2017, Vol 6, Issue 1

Abstract

The aim of this study is to investigate the relationship between the rate of return on investment, return on assets and return on equity valuable rights in companies listed in the Tehran Stock Exchange. The type of research is applied, and it is limited to the years 2009-2014 period. The study population included 193 registered and accepted companies in Tehran Stock Exchange, which their data obtained using the financial statements and notes along with the financial statements, for the accepted companies in the Tehran Stock Exchange, Iran. The results show that there is a negative relation between the rate of return on assets and capital structure (ratio of short-term debt to total assets ratio long term debt to total assets, as independent variables). This means that under normal circumstances, the choice of capital structure has an impact on the rate of return on assets in companies listed on the Tehran Stock Exchange, and companies have a higher rate of return on assets, less debt in the capital structure of its more use. But there is a significant relationship between capital structure (ratio of shortterm debt to total assets ratio long term debt to total assets) at the rate of return on equity.

Authors and Affiliations

Mohammad Yavari, Davood Jafari seresht

Keywords

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  • EP ID EP29662
  • DOI -
  • Views 317
  • Downloads 6

How To Cite

Mohammad Yavari, Davood Jafari seresht (2017). Study of the Relationship between Capital Structure and Return on Assets and Return. Journal of Science and today’s world, 6(1), -. https://europub.co.uk/articles/-A-29662