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

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  • EP ID EP126607
  • DOI 10.6007/IJARAFMS/v4-i2/979
  • Views 88
  • 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