Effect of Profitability Indices on the Capital Structure of Listed Companies in Tehran Stock Exchange

Subject Areas : Financial Mathematics

Hossien Karbasi Yazdi ¹ , Majid Mohammadian ²

1 - Department of Management and Accounting, Islamic Azad University, South Tehran Branch, Tehran, Iran
2 - Department of Management and Accounting, Islamic Azad University, South Tehran Branch, Tehran, Iran

Received: 2017-07-25 Accepted : 2017-09-20 Published : 2017-09-01

Keywords: Capital Structure, Profitability indicator, Assets ratio,

Abstract :

The main objective of this research is the index of profitability on the capital structure of listed companies on the Stock Exchange of Tehran.Statistical population consisted of all above companies that 138 companies were selected in time zone of 2011-2014 after screening method (systematic elimination). The research method is descriptive and correlation and study variable is profitability index that was tested by statistical techniques.Research findings indicate that there is a significant inverse relationship between indicators of profitability and capital structure.Also, there is a significant inverse relationship between short-term and long-term profitability and debts

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