The Relationship between Capital Structure and Corporate Performance In the Tehran Stock Exchange (Business Cycle Effect)

Subject Areas : Financial Knowledge of Securities Analysis

Akram  Roshanpazhooh ¹ (Master of Business Administration in Finance)
Fraydoon  Ohadi ² (Assistant Professor of Industrial Engineering, Islamic Azad University, Karaj Branch)

Received: 2017-10-22 Accepted : 2018-01-15 Published : 2019-12-22

Keywords: Capital Structure, Performance, Business Cycle, Regression Model, Tehran Stock Exchange,

Abstract :

Identifying the factors affecting company performance and its analysis in the past and its future prediction for decision making in the financial area is very important. Important factors that play a critical role in determining how firms and institutions work are corporate capital structure and firm strategies.The purpose of this study is to examine the impact of the business cycle on the capital structure and the impact of capital structure on their performance. Hence, in a descriptive-correlation study،a total of 71 companies fromTehran stock exchange from 2004to2015 were selected. For data analysis, panel regression model and Eviews8 software were used. The results indicate an insignificant effect of the business cycle on capital structure، also indicate the negative and significant effect of capital structure on the company's performance in different business cycles.

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