Surveying the Effect of Off-Balance Sheet Financing on Profitability Ratios

Subject Areas : Futurology

Gh. , Talebnia ¹ , F. Rahnamaye roodposhti ² , Ch. Talebpoorasl ³

1 - نویسنده مسئول یا طرف مکاتبه
2 - ندارد
3 - ندارد

Received: 2008-12-22 Accepted : 2009-02-22 Published : 2010-03-21

Keywords: Off balance sheet financing, Return on investment, return on equity, return on assets, Operating lease,

Abstract :

In this thesis the effect of off-balance sheet financing on profitability ratios (ROA,ROE,ROI) inTehran Stock Exchange has been studied. In fact, this study is an answer to this question that "whateffects can off-balance sheet financing (operating lease) has on profitability ratios in Tehran StockExchange?" Off-balance sheet financing means investing or increasing firm´s capital (increaseoperating activities) according to law and accepted accounting concepts that all or part of thatfinancing is not shown on balance sheet and profitability ratios evaluate firm´s efficiency and ability tomake use of resources using sales revenue and investment.In this study causal-comparative method has been used. Which library method (exchange’s archive)were used for gathering needed information in theorical basis and financial information based auditedfinancial statement. In this study, firm´s profitability ratios before and after off-balance sheetfinancing, and firms having and without off-balance sheet financing are compared.Hypothesizes analysis show that, from 1380-1385, off-balance sheet financing hasn’t had considerableeffect on profitability ratios.