The Relationship between Product Market Competition and Capital Structure of the Selected Industries of the Tehran Stock Exchange
Journal Title: International Journal of Academic Research in Accounting, Finance and Management Sciences - Year 2013, Vol 3, Issue 3
Abstract
The main objective of this study is to examine the relationship between product market competition and capital structure of the selected industries on the Tehran Stock Exchange. Considering Tobin’s Q and Herfindahl-Hirschman index as the independent variable and the debt ratio as the dependent variable, the research model is developed. This is an applied study classified as the descriptive-correlation study. The sample covers 89 listed firms on the Tehran Stock Exchange during a period over 2007 to 2011. The collected data is analyzed by using multivariate regression executed in EVIEWS software. The findings reveal that there is a significant association between the capital structures of the selected industry and the product market competition. Additionally, applying Tobin’s Q and Herfindahl-Hirschman index as the indexes to measure the competitiveness in the product market does not document the significant relationship between product market competition and capital structure. The other findings, however, confirm the nonlinear relationship between Tobin’s Q and capital structure.
Authors and Affiliations
Mahmoud Moeinaddin, Shahnaz Nayebzadeh, Masoumeh Ghasemi
Keywords
Related Articles
- EP ID EP104187
- DOI 10.6007/IJARAFMS/v3-i3/132
- Views 69
- Downloads 0
TMAP: Trip Recommendation System Accommodating the Mobile Tourist Preferences
Having or making a trip is a very important component of everyday life. With the new technology, the trip recommendation accommodating the mobile tourist preferences possible and has become a new research area. This type...
Human Capital and Economic Growth in Asian Countries
Environmental Costs and Environmental Information Disclosure in the Accounting Systems
Nowadays, the effects of human societies have increased on environment due to technological and industrial development. So environment variations could affect human beings like other animal species. Given the importance...
Score Function Model Applied For Assessing the Adequacy of Internal Controls and Risk Management Function within Romanian Investment Firms
Effect of Customer Relationship Management (CRM) on Performance of Small-Medium Sized Enterprises (SMEs) Using Structural Equations Model (SEM)
In today world, the necessity of continuing activities and maintaining the competitive advantage is attention to customers that due to their direct relationship with organization actions are valuable source for opportuni...