Evaluating the Effect of firm Characteristics on Capital Structure

Different financial decisions are necessary for financial prosperity and also firm continued activity. An incorrect decision about financial structure may lead into financial pressures and finally bankruptcy. Managers usually determine firms structure like that the firm value becomes highest. Obviou...

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Main Authors: Abulfazl Ghadiri Moghadam, Ph.D, Fateme Asadian
Format: Article
Language:fas
Published: Shahid Bahonar University of Kerman 2010-06-01
Series:مجله توسعه و سرمایه
Subjects:
Online Access:https://jdc.uk.ac.ir/article_1920_63b63beed64f638bb0206d24ab101cb9.pdf
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author Abulfazl Ghadiri Moghadam, Ph.D
Fateme Asadian
author_facet Abulfazl Ghadiri Moghadam, Ph.D
Fateme Asadian
author_sort Abulfazl Ghadiri Moghadam, Ph.D
collection DOAJ
description Different financial decisions are necessary for financial prosperity and also firm continued activity. An incorrect decision about financial structure may lead into financial pressures and finally bankruptcy. Managers usually determine firms structure like that the firm value becomes highest. Obviously managers' decision makings about the ways of providing firm financial resources are considered as a given strategy to adjust decisions considering the expedients of economic environment and also regarded as an appropriate model for increased efficiency of thought dominating firm function. The purpose of this research is to evaluate the effect of firm characteristics (quick ratio, interest coverage ratio, income growth, firm size, debt ratio, Tehran stock exchange) on capital structure whether mentioned cases influence the financial structure of firm. Obtained results specify that there is a significant relationship between quick ratio and interest coverage ratio of firm with firm debt ratio (capital structure). The method which has been used in this research is deductive. This research is an applied one in which real information and statistical methods have been used for proving the hypotheses. Samples have been selected randomly during time period of 2002 through 2006 and SPSS software has been used for analyzing data.
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spelling doaj.art-bf7511552bea4c5a862900ab299de24e2023-05-02T06:51:12ZfasShahid Bahonar University of Kermanمجله توسعه و سرمایه2008-24282645-36062010-06-013115517610.22103/jdc.2010.19201920Evaluating the Effect of firm Characteristics on Capital StructureAbulfazl Ghadiri Moghadam, Ph.D0Fateme Asadian1Assistant professor of Accounting, Mashhad Ferdowsi University, Mashhad, Iran.Graduation Student of Accounting, Islamic Azad University, Mashhad Branch, Mashhad, Iran.Different financial decisions are necessary for financial prosperity and also firm continued activity. An incorrect decision about financial structure may lead into financial pressures and finally bankruptcy. Managers usually determine firms structure like that the firm value becomes highest. Obviously managers' decision makings about the ways of providing firm financial resources are considered as a given strategy to adjust decisions considering the expedients of economic environment and also regarded as an appropriate model for increased efficiency of thought dominating firm function. The purpose of this research is to evaluate the effect of firm characteristics (quick ratio, interest coverage ratio, income growth, firm size, debt ratio, Tehran stock exchange) on capital structure whether mentioned cases influence the financial structure of firm. Obtained results specify that there is a significant relationship between quick ratio and interest coverage ratio of firm with firm debt ratio (capital structure). The method which has been used in this research is deductive. This research is an applied one in which real information and statistical methods have been used for proving the hypotheses. Samples have been selected randomly during time period of 2002 through 2006 and SPSS software has been used for analyzing data.https://jdc.uk.ac.ir/article_1920_63b63beed64f638bb0206d24ab101cb9.pdfquick ratiointerest coverage ratioincome growthfirm sizedebt ratiotehran stock exchange
spellingShingle Abulfazl Ghadiri Moghadam, Ph.D
Fateme Asadian
Evaluating the Effect of firm Characteristics on Capital Structure
مجله توسعه و سرمایه
quick ratio
interest coverage ratio
income growth
firm size
debt ratio
tehran stock exchange
title Evaluating the Effect of firm Characteristics on Capital Structure
title_full Evaluating the Effect of firm Characteristics on Capital Structure
title_fullStr Evaluating the Effect of firm Characteristics on Capital Structure
title_full_unstemmed Evaluating the Effect of firm Characteristics on Capital Structure
title_short Evaluating the Effect of firm Characteristics on Capital Structure
title_sort evaluating the effect of firm characteristics on capital structure
topic quick ratio
interest coverage ratio
income growth
firm size
debt ratio
tehran stock exchange
url https://jdc.uk.ac.ir/article_1920_63b63beed64f638bb0206d24ab101cb9.pdf
work_keys_str_mv AT abulfazlghadirimoghadamphd evaluatingtheeffectoffirmcharacteristicsoncapitalstructure
AT fatemeasadian evaluatingtheeffectoffirmcharacteristicsoncapitalstructure