The Investigation of the Effect of Different Methods of Financing on the Stock Returns of Companies Listed in Tehran Stock Exchange (2001-2010)

Subject Areas : Industrial Management

Kayvan Faramarzi ¹ , Serveh Mohammadi ²

1 - PhD student in Accounting, International Bandar-e Anzali Branch, Islamic Azad University, Anzali, Iran
2 - MA Graduate in Accounting, Hamedan Branch, Islamic Azad University, Hamedan, Iran

Received: 2015-12-30 Accepted : 2016-07-18 Published : 2016-08-25

Keywords:

Abstract :

The main objective of this research is to study the effects of various methods of financing over stock’s return of accepted companies in Tehran stock exchange from 2001 to 2010. The studied companies are those which have been used various methods of financing including borrowing from bank system, issuance of stock, retained earnings and they have presented financial statements (balance sheet and statement of loss and gain), as well as the required financial information in the studied period. The results will be used to predict the method of financing for future years. Analyzing the research hypotheses, univariate and stepwise regression was used. All of the hypotheses have been tested in insurance level of 95%. This research has been done with a simple template included 53 companies from Tehran stock exchange from 2001 to 2010. The results of the research show that financing methods have a significant effect on stock’s return. And financing methods via borrowing from bank system has vice versa relation while financing from stock issuance and retained earning whit stock’s return has direct relation.

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