Document Type : Research Paper

Authors

• Sasan Mehrani
• Amir Rasaiian

Abstract

The firms' capital structure plays an important role in investment decision making. The main goal of this paper is review the relationship between capital structure and profitability measures in Tehran Stock Exchange. Therefore 189 sample firms that their required data for a nine years period (1375-1383) was available are selected. Then the relation between profitability ratios and capital structure is reviewed. Four industries of sample statistic, that had more firms, are selected to examine the hypotheses too. The panel data regression is used to examine the hypotheses. Signification of the models is examined by T and F statistics.

Keywords

• Capital structure
• Profitability ratios
• Panel data regression
• Financial Leverage