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
Assessing Comparative Advantage of Pakistan with United States of America. The Role of Pakistan’s Export Financial Sector
Present study endeavors to assess the comparative advantage of Pakistan’s exports to United Sates of America. Generally comparative advantage is an important concept for explaining pattern of international trade. Aim of...
An examination into the Quality of Audited Financial Statements of Money Deposit Banks in Nigeria
Regression Model Used in Analyzing the Effect of Foreign Direct Investment on Economic Growth
FDI definitely influence economic growth. While analyzing the link between FDI and economic growth, we bear in mind that investments influence economic growth. Empirical studies reveal that FDI effect upon economic growt...
Do Listed Companies Need an IFRS Committee Beside Audit Committee?
The aim of the study is to identify the necessity of forming an international accounting standards committee from the board of director and to investigate its role in reinforcing corporate governance pillars and the inte...
Impact of Information Risk on the Liquidity Risk of the Firms Listed on the Tehran Stock Exchange