International Journal of Academic Research in Business and Social Sciences

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The Impact of Capital Structure on Corporate Performance

Open access

Abolfazl Ghadiri Moghaddam, Mahdi Sadeghi Kashkoueyeh, Mohammadmahdi Talezadeh, Mohammadreza Aala, Mahdi Ebrahimpour, Mina Tehranypour

Pages 404-418 Received: 30 Nov, -0001 Revised: 30 Nov, -0001 Published Online: 15 Jun, 2015

http://dx.doi.org/10.46886/IJARBSS/v5-i3/1528
The present study was designed to gather evidence about the relationship between short-term debt, long-term debt with variables such as EPS, return on equity, return on assets and the ratio Q / B. This research was conducted in companies listed in Tehran Stock Exchange. Multiple linear regressions were used to test the hypothesis. In this study, 3 dependent variables, 4 control variables and 3 independent variables are used. Also, 12 hypotheses were provided for this study. The sample of the study consisted of 50 participate in a 5-year period of 2008 to 2012. The findings suggest that there is negative relationship between short-term debt, long-term debt and total debt with returns on equity. Also about four to six hypothesis it became clear that short-term debt and total debt to equity returns are negatively related. In testing hypotheses 7 and 9 showed that short-term debt, long-term debt and total debt is negatively associated with ROA. Also worth noting that in 10 to 12 hypothesis it is showed that there is negative relationship between short-term debt and total debt by Tobin's q.