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

Forensic Accounting Investigation Techniques and Successful Prosecution of Corruption Cases in Nigeria

With the upsurge in the loss of high profile corruption cases by the anti-corruption agencies in Nigeria, resulting from the inability of the prosecutors to come before courts with legally acceptable evidence, the adopti...

The Associations of Internal Audit Quality with Job Burnout and Job Satisfaction Based on Theory of Reasoned Action

Among the important determinants of long term survival in public shareholding companies, is the quality of internal audit, which is considered among the primary factors affecting the financial information credibility. Fo...

A Theoretical Discussion of Factors Affecting the Internal Audit Quality in Jordanian Public Shareholding Companies

Scholars have not been in agreement in terms of the influencing factors of internal auditing quality and the best way for measuring them, and most notably, the framework that is most fitting for internal audit quality. T...

Investigating Effect of Oil Prices on Firm Value with Emphasis on Industry Type

The most important decision criterion for the investors and creditors to select the most appropriate investment option are stock price and firm value. Given the high dependence of Iran's economy to the oil industry and o...

Download PDF file
  • EP ID EP162814
  • DOI 10.6007/IJARAFMS/v4-i2/979
  • Views 86
  • 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-162814