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The Investigation the Relationship between Short- and Long-Term Debts in Capital Structure on Performance of Listed Companies in Tehran Stock Exchange
Volume 1, Issue 4, 2019, Pages 282 - 288
1 Department of Accounting, Damghan Branch, Islamic Azad University, Damghan, Iran
2 Department of Accounting, Damghan Branch, Islamic Azad University, Damghan, Iran
Abstract :
In this study, the relationship between short-term and long-term debt in the capital structure on the performance of companies listed on the Tehran Stock Exchange during the period 1397-1391 has been investigated. To conduct this research, 185 companies listed on the Tehran Stock Exchange during the mentioned period were surveyed. Integrated / hybrid regression analysis in EViews 6 software was used to test the research hypotheses. The independent (explanatory) variables used in this study are the ratio of short-term debt to total debt, the ratio of long-term debt to total debt, and the ratio of total debt to total assets. The dependent variable of this research is the company's performance based on the rate of return on equity. Also, in this study, the control variables of company size, sales growth, asset growth and company efficiency have been used. The present study has 3 hypotheses to determine the effect of the ratio of short-term debt to total debt, the ratio of long-term debt to total debt and the ratio of total debt to total assets. Findings show that at the level of companies as a whole, short-term and long-term debt has no effect on company performance.
In this study, the relationship between short-term and long-term debt in the capital structure on the performance of companies listed on the Tehran Stock Exchange during the period 1397-1391 has been investigated. To conduct this research, 185 companies listed on the Tehran Stock Exchange during the mentioned period were surveyed. Integrated / hybrid regression analysis in EViews 6 software was used to test the research hypotheses. The independent (explanatory) variables used in this study are the ratio of short-term debt to total debt, the ratio of long-term debt to total debt, and the ratio of total debt to total assets. The dependent variable of this research is the company's performance based on the rate of return on equity. Also, in this study, the control variables of company size, sales growth, asset growth and company efficiency have been used. The present study has 3 hypotheses to determine the effect of the ratio of short-term debt to total debt, the ratio of long-term debt to total debt and the ratio of total debt to total assets. Findings show that at the level of companies as a whole, short-term and long-term debt has no effect on company performance.
Keywords :
Short-term debt, long-term debt, performance of listed companies.
Short-term debt, long-term debt, performance of listed companies.