Impact of the Capital Structure Tools on the Performance Indicators in the Listed Companies in Tehran Stock Exchange

Mostafa Zangiabadi; Amin Rahimzade; Mahdie Taboli

doi:doi:10.11648/j.jim.20150405.20

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Impact of the Capital Structure Tools on the Performance Indicators in the Listed Companies in Tehran Stock Exchange

Mostafa Zangiabadi, Amin Rahimzade, Mahdie Taboli

Published in Journal of Investment and Management (Volume 4, Issue 5)

Received: 21 July 2015 Accepted: 4 August 2015 Published: 12 August 2015

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Abstract

Today, one of the objectives of the financial managers is to maximize shareholder wealth, and in this context, determining the capital structure is a key factor. Due to tax benefits, the use of financial leverage is considered. On the other hand, due to higher interest costs associated with obtaining debt, bankruptcy may also exist. In conclusion, this study examines the impact of capital structure tools on the return on equity, return on assets and return on working capital. This paper examines the data from 2001 to 2011 companies listed in Tehran Stock Exchange. And the results after using the linear regression model, suggest that debt ratio is not affected on the return on equity, but is affected on the return on assets. while debt to net worth ratio and current and long-term debt to net worth ratio is affected on the return on equity. Also, the results show that debt to assets ratio and debt to net worth ratio and current and long-term debt to net worth ratio does not affect on the rate of return on working capital. And debt to net worth ratio and current and long-term debt to net worth ratio does not affect on the rate of return on assets. Overall, the results show that the capital structure affects on the performance of listed companies in Tehran stock exchange

Published in	Journal of Investment and Management (Volume 4, Issue 5)
DOI	10.11648/j.jim.20150405.20
Page(s)	204-209
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2024. Published by Science Publishing Group

Keywords

Capital Structure, Debt Ratio, Debt to Net Worth Ratio, Debt to Assets Ratio, Return on Equity, Return on Assets, Return on Working Capital

References

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[19]	Zahmatkesh, J. 2005. The assessing the nature of the capital structure and its impact on stock returns of companies operating in the cement industry in the years 1998-2002, MA thesis, University of Science and Research, Tehran, IRAN.

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APA Style

Mostafa Zangiabadi, Amin Rahimzade, Mahdie Taboli. (2015). Impact of the Capital Structure Tools on the Performance Indicators in the Listed Companies in Tehran Stock Exchange. Journal of Investment and Management, 4(5), 204-209. https://doi.org/10.11648/j.jim.20150405.20

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ACS Style

Mostafa Zangiabadi; Amin Rahimzade; Mahdie Taboli. Impact of the Capital Structure Tools on the Performance Indicators in the Listed Companies in Tehran Stock Exchange. J. Invest. Manag. 2015, 4(5), 204-209. doi: 10.11648/j.jim.20150405.20

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AMA Style

Mostafa Zangiabadi, Amin Rahimzade, Mahdie Taboli. Impact of the Capital Structure Tools on the Performance Indicators in the Listed Companies in Tehran Stock Exchange. J Invest Manag. 2015;4(5):204-209. doi: 10.11648/j.jim.20150405.20

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@article{10.11648/j.jim.20150405.20,
  author = {Mostafa Zangiabadi and Amin Rahimzade and Mahdie Taboli},
  title = {Impact of the Capital Structure Tools on the Performance Indicators in the Listed Companies in Tehran Stock Exchange},
  journal = {Journal of Investment and Management},
  volume = {4},
  number = {5},
  pages = {204-209},
  doi = {10.11648/j.jim.20150405.20},
  url = {https://doi.org/10.11648/j.jim.20150405.20},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jim.20150405.20},
  abstract = {Today, one of the objectives of the financial managers is to maximize shareholder wealth, and in this context, determining the capital structure is a key factor. Due to tax benefits, the use of financial leverage is considered. On the other hand, due to higher interest costs associated with obtaining debt, bankruptcy may also exist. In conclusion, this study examines the impact of capital structure tools on the return on equity, return on assets and return on working capital. This paper examines the data from 2001 to 2011 companies listed in Tehran Stock Exchange. And the results after using the linear regression model, suggest that debt ratio is not affected on the return on equity, but is affected on the return on assets. while debt to net worth ratio and current and long-term debt to net worth ratio is affected on the return on equity. Also, the results show that debt to assets ratio and debt to net worth ratio and current and long-term debt to net worth ratio does not affect on the rate of return on working capital. And debt to net worth ratio and current and long-term debt to net worth ratio does not affect on the rate of return on assets. Overall, the results show that the capital structure affects on the performance of listed companies in Tehran stock exchange},
 year = {2015}
}

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TY  - JOUR
T1  - Impact of the Capital Structure Tools on the Performance Indicators in the Listed Companies in Tehran Stock Exchange
AU  - Mostafa Zangiabadi
AU  - Amin Rahimzade
AU  - Mahdie Taboli
Y1  - 2015/08/12
PY  - 2015
N1  - https://doi.org/10.11648/j.jim.20150405.20
DO  - 10.11648/j.jim.20150405.20
T2  - Journal of Investment and Management
JF  - Journal of Investment and Management
JO  - Journal of Investment and Management
SP  - 204
EP  - 209
PB  - Science Publishing Group
SN  - 2328-7721
UR  - https://doi.org/10.11648/j.jim.20150405.20
AB  - Today, one of the objectives of the financial managers is to maximize shareholder wealth, and in this context, determining the capital structure is a key factor. Due to tax benefits, the use of financial leverage is considered. On the other hand, due to higher interest costs associated with obtaining debt, bankruptcy may also exist. In conclusion, this study examines the impact of capital structure tools on the return on equity, return on assets and return on working capital. This paper examines the data from 2001 to 2011 companies listed in Tehran Stock Exchange. And the results after using the linear regression model, suggest that debt ratio is not affected on the return on equity, but is affected on the return on assets. while debt to net worth ratio and current and long-term debt to net worth ratio is affected on the return on equity. Also, the results show that debt to assets ratio and debt to net worth ratio and current and long-term debt to net worth ratio does not affect on the rate of return on working capital. And debt to net worth ratio and current and long-term debt to net worth ratio does not affect on the rate of return on assets. Overall, the results show that the capital structure affects on the performance of listed companies in Tehran stock exchange
VL  - 4
IS  - 5
ER  -

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Author Information

Mostafa Zangiabadi

Faculty of Management and Accounting, Allame Tabatabaei University of Tehran, Tehran, Iran
Amin Rahimzade

Faculty of Management and Accounting, University of Qom, Qom, Iran
Mahdie Taboli

Scientific Group of Accounting, Department of Payame Noor University, Zangiabad, Iran

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Plain Text BibTeX RIS

APA Style

Mostafa Zangiabadi, Amin Rahimzade, Mahdie Taboli. (2015). Impact of the Capital Structure Tools on the Performance Indicators in the Listed Companies in Tehran Stock Exchange. Journal of Investment and Management, 4(5), 204-209. https://doi.org/10.11648/j.jim.20150405.20

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ACS Style

Mostafa Zangiabadi; Amin Rahimzade; Mahdie Taboli. Impact of the Capital Structure Tools on the Performance Indicators in the Listed Companies in Tehran Stock Exchange. J. Invest. Manag. 2015, 4(5), 204-209. doi: 10.11648/j.jim.20150405.20

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AMA Style

Mostafa Zangiabadi, Amin Rahimzade, Mahdie Taboli. Impact of the Capital Structure Tools on the Performance Indicators in the Listed Companies in Tehran Stock Exchange. J Invest Manag. 2015;4(5):204-209. doi: 10.11648/j.jim.20150405.20

Copy | Download

@article{10.11648/j.jim.20150405.20,
  author = {Mostafa Zangiabadi and Amin Rahimzade and Mahdie Taboli},
  title = {Impact of the Capital Structure Tools on the Performance Indicators in the Listed Companies in Tehran Stock Exchange},
  journal = {Journal of Investment and Management},
  volume = {4},
  number = {5},
  pages = {204-209},
  doi = {10.11648/j.jim.20150405.20},
  url = {https://doi.org/10.11648/j.jim.20150405.20},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jim.20150405.20},
  abstract = {Today, one of the objectives of the financial managers is to maximize shareholder wealth, and in this context, determining the capital structure is a key factor. Due to tax benefits, the use of financial leverage is considered. On the other hand, due to higher interest costs associated with obtaining debt, bankruptcy may also exist. In conclusion, this study examines the impact of capital structure tools on the return on equity, return on assets and return on working capital. This paper examines the data from 2001 to 2011 companies listed in Tehran Stock Exchange. And the results after using the linear regression model, suggest that debt ratio is not affected on the return on equity, but is affected on the return on assets. while debt to net worth ratio and current and long-term debt to net worth ratio is affected on the return on equity. Also, the results show that debt to assets ratio and debt to net worth ratio and current and long-term debt to net worth ratio does not affect on the rate of return on working capital. And debt to net worth ratio and current and long-term debt to net worth ratio does not affect on the rate of return on assets. Overall, the results show that the capital structure affects on the performance of listed companies in Tehran stock exchange},
 year = {2015}
}

Copy | Download

TY  - JOUR
T1  - Impact of the Capital Structure Tools on the Performance Indicators in the Listed Companies in Tehran Stock Exchange
AU  - Mostafa Zangiabadi
AU  - Amin Rahimzade
AU  - Mahdie Taboli
Y1  - 2015/08/12
PY  - 2015
N1  - https://doi.org/10.11648/j.jim.20150405.20
DO  - 10.11648/j.jim.20150405.20
T2  - Journal of Investment and Management
JF  - Journal of Investment and Management
JO  - Journal of Investment and Management
SP  - 204
EP  - 209
PB  - Science Publishing Group
SN  - 2328-7721
UR  - https://doi.org/10.11648/j.jim.20150405.20
AB  - Today, one of the objectives of the financial managers is to maximize shareholder wealth, and in this context, determining the capital structure is a key factor. Due to tax benefits, the use of financial leverage is considered. On the other hand, due to higher interest costs associated with obtaining debt, bankruptcy may also exist. In conclusion, this study examines the impact of capital structure tools on the return on equity, return on assets and return on working capital. This paper examines the data from 2001 to 2011 companies listed in Tehran Stock Exchange. And the results after using the linear regression model, suggest that debt ratio is not affected on the return on equity, but is affected on the return on assets. while debt to net worth ratio and current and long-term debt to net worth ratio is affected on the return on equity. Also, the results show that debt to assets ratio and debt to net worth ratio and current and long-term debt to net worth ratio does not affect on the rate of return on working capital. And debt to net worth ratio and current and long-term debt to net worth ratio does not affect on the rate of return on assets. Overall, the results show that the capital structure affects on the performance of listed companies in Tehran stock exchange
VL  - 4
IS  - 5
ER  -

Copy | Download