Investment Opportunity Evaluation by Analyzing the Effective Financial Structure on Company Value
Subject Areas : Journal of Investment KnowledgeZahra Amir- Hossieni 1 , Masoumeh Ghobadi 2
1 - Assistant Professor of Islamic Azad University. Shahr -e- Qods Branch
2 - D.B.A. student of IFEA ( Iran Financial Engineering Association)
Keywords: company value, estimated potential investment, financial structure, effectiveness factors,
Abstract :
Regarding to the requirement of making decisions related to buy or invest in new economic institutions along with correct and detailed information about their status and economic development circumstances, the estimated potential investment identifies its role and implication ever better. Recognizing the effectiveness created by the financing strategy on organizational values, alongside the factors playing a key role in the process of evaluating the financial structure are urgent elements lead to the success of such an scheme. This research aims to draw a series of mathematical models which could be used as instruments for defining the quantification of the impacts generated by the financial structure on the companies’ value based on a sample consisted of 75 companies quoted in Tehran Stock Exchange regarding to the weight of their activities in gaining Gross Domestic Product (GDP) in 1391(solar year). Simultaneously, this study tries to determine the internal factors that are specific to the company and characterize the feature of the financial structure and intensity of their performance upon financial leverage as well. For getting results, methods of data analysis were used such as: ratio technique, linear regression analysis or alternative independent variables, ANCOVA type. Data processing was accomplished using SPSS21 and AMOS20 statistical software. The results represent that there is a positive relation between the ratio of financial self-independence and dividend ratio of the company value in one hand, and negative relationship between debt ratios and value of the firm in the other hand. Also, increased ratio of financial self-independence and the cash ratio decrease financial leverage, while, increased return of assets and the ratio of intangible fixed assets will increase financial one.