Explain the strategic and non-strategic industries distinction Tehran Stock Exchange with emphasis on capital structure and cash value added (CVA) with panel data approach

Subject Areas : Journal of Investment Knowledge

Saied  Saieda Ardakani ¹ (Associate Professor of Yazd University)
Frogh  Hairany ² (Member of Board of IAU, Yazd Branch)
Mohsen  Dehghan Mirokabad ³ (M.A Accounting of IAU, Yazd Branch (Corresponding Author))

Received: 2012-12-25 Accepted : 2013-03-10 Published : 2013-03-10

Keywords: financial structure, strategic industries, non-strategic industries, cash value, regression combination,

Abstract :

One important component of any economic activity, providing financial resources needed. Financial resources can to provide from equity or debt. combining debt and equity at financing represents the financial structure. Optimal financial structure refers to the combination of the two is that maximization firm’s value and to minimize capital costs. Aim of this study is to emphasize the financial structure of categories and its efficacy on firm’s value according to the industry. Criteria used to measure the financial structure of research is the debt to asset ratio (FL)   and long-term debt to total equity (NCE). that the resources of the Company has financed through debt shows. Cash value added; part cash wealth created by the company shows. Results of this research indicate that both strategic and non-strategic industries and the entire industry significant relationship between financial structure and cash value added there. Adjusted coefficients of determine and coefficients of independent variables in regression models show the relationships between financial structure and cash value added in strategic and non-strategic industries have significant difference together.