The Effect of Financing Methods on the Profitability Level of Food Industry Companies Quoted in Tehran Stock Exchange

Abstract

The purpose of this research is to study the effect of financing methods on profitability level of food industry companies quoted in Tehran stock exchange. Time period of this research is 2007-2011, and a number of 37 food industry companies were chosen as sample. Regression analysis and Pearson`s correlation have been used in SPSS 16 software, in order to test the research assumptions. In this research, dividend revenue has been considered as dependent variable, and financing methods in three dimensions (retained earnings, long-term loan, and short-term loan) have been considered as independent variables. The research findings indicate that using loan (long-term loan and short-term loan) leads to increase in dividend revenue in food industry. While, using retained earnings in financing, has no effect on dividend revenue on mentioned industry.

Authors and Affiliations

Jamshid Jafari Darabjerdi, Tahereh Kakoo Joybary

Keywords

Related Articles

Effect of Heuristic Factors and Real Estate Investment in Embu County, Kenya

Investment decisions are deemed as a deliberate and rational process based on availability of information. Though at times people are usually found to hold little information but yet end up making general decisions. Heur...

Analysis of All Inclusive System Applied by the Accommodation Businesses in Turkey in the Context of Target Costing

That the accommodation managements could sustain their existences operating in a competition in which the sale price of services they provide is ascertained show parallelism with controls of their costs. In this context,...

The Correlation between Final Consumption, Gross Available Income and Gross Investment. An Econometric Analysis

This paper presents an econometric approach to the issue of analysis of the final consumption. Among its influence factors, the gross investments and the gross available income are considered to be especially important,...

The Informational Content for the Accounting Profit Measurements and its Relations to the Earning per Share in the Jordanian Public Shareholding Industrial Companies: An Empirical Study (2006-2013)

This study aims to find out the relationship between the informational content for the accounting profit measurement (the percentage return on investment, working capital, the operating profits and earnings per share). F...

Extent of Coordination and Cooperation between the Accounting Bureau and the Internal Auditors in the Jordanian Public Sector

This study aimed at measuring the extent of coordination and cooperation between the Auditing Bureau and the internal auditors in the Jordanian public sector. The study prepared and developed a questionnaire to collect f...

Download PDF file
  • EP ID EP126607
  • DOI 10.6007/IJARAFMS/v4-i2/979
  • Views 59
  • Downloads 0

How To Cite

Jamshid Jafari Darabjerdi, Tahereh Kakoo Joybary (2014). The Effect of Financing Methods on the Profitability Level of Food Industry Companies Quoted in Tehran Stock Exchange. International Journal of Academic Research in Accounting, Finance and Management Sciences, 4(3), 36-40. https://europub.co.uk/articles/-A-126607