The Effect of Product Market Competition on the Relationship between Capital Structure and Financial Performance of Companies
Investors and stakeholders are the two groups to which information about the company's financial performance is important. Given the importance of good financial performance of the companies to investors and stakeholders for maximizing their wealth, it is essential to identify and study the fa...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
EconJournals
2017-06-01
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| Series: | International Journal of Economics and Financial Issues |
| Online Access: | https://econjournals.com/index.php/ijefi/article/view/4807 |
| _version_ | 1797921272113397760 |
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| author | Mahmoud Mahmoudzadeh Ali Seyfi |
| author_facet | Mahmoud Mahmoudzadeh Ali Seyfi |
| author_sort | Mahmoud Mahmoudzadeh |
| collection | DOAJ |
| description |
Investors and stakeholders are the two groups to which information about the company's financial performance is important. Given the importance of good financial performance of the companies to investors and stakeholders for maximizing their wealth, it is essential to identify and study the factors affecting financial performance. Therefore, the present study aims to examine the effect of product market competition on the relationship between capital structure and financial performance of the companies listed in Tehran Stock Exchange during 2009 to 2013. Panel data model and Eviews software were used for data analysis and hypotheses test. General conclusion of the research hypotheses shows that financial leverage, level of competition, and mutual effect of financial leverage have significant effect on the sample companies' financial performance. Thus, all research hypotheses are confirmed.
Keywords: Financial leverage, the level of competition, financial performance.
JEL Classifications: G2, G31
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| first_indexed | 2024-04-10T14:14:50Z |
| format | Article |
| id | doaj.art-e27b2b5f5653468fb0d9b2c3ed7dd2f4 |
| institution | Directory Open Access Journal |
| issn | 2146-4138 |
| language | English |
| last_indexed | 2024-04-10T14:14:50Z |
| publishDate | 2017-06-01 |
| publisher | EconJournals |
| record_format | Article |
| series | International Journal of Economics and Financial Issues |
| spelling | doaj.art-e27b2b5f5653468fb0d9b2c3ed7dd2f42023-02-15T16:09:37ZengEconJournalsInternational Journal of Economics and Financial Issues2146-41382017-06-0173The Effect of Product Market Competition on the Relationship between Capital Structure and Financial Performance of CompaniesMahmoud MahmoudzadehAli Seyfi Investors and stakeholders are the two groups to which information about the company's financial performance is important. Given the importance of good financial performance of the companies to investors and stakeholders for maximizing their wealth, it is essential to identify and study the factors affecting financial performance. Therefore, the present study aims to examine the effect of product market competition on the relationship between capital structure and financial performance of the companies listed in Tehran Stock Exchange during 2009 to 2013. Panel data model and Eviews software were used for data analysis and hypotheses test. General conclusion of the research hypotheses shows that financial leverage, level of competition, and mutual effect of financial leverage have significant effect on the sample companies' financial performance. Thus, all research hypotheses are confirmed. Keywords: Financial leverage, the level of competition, financial performance. JEL Classifications: G2, G31 https://econjournals.com/index.php/ijefi/article/view/4807 |
| spellingShingle | Mahmoud Mahmoudzadeh Ali Seyfi The Effect of Product Market Competition on the Relationship between Capital Structure and Financial Performance of Companies International Journal of Economics and Financial Issues |
| title | The Effect of Product Market Competition on the Relationship between Capital Structure and Financial Performance of Companies |
| title_full | The Effect of Product Market Competition on the Relationship between Capital Structure and Financial Performance of Companies |
| title_fullStr | The Effect of Product Market Competition on the Relationship between Capital Structure and Financial Performance of Companies |
| title_full_unstemmed | The Effect of Product Market Competition on the Relationship between Capital Structure and Financial Performance of Companies |
| title_short | The Effect of Product Market Competition on the Relationship between Capital Structure and Financial Performance of Companies |
| title_sort | effect of product market competition on the relationship between capital structure and financial performance of companies |
| url | https://econjournals.com/index.php/ijefi/article/view/4807 |
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