Abstract:
Companies’ managements have various resources and different methods of
financing at their disposal to provide required cash for capital expenses and
company operations. The main purpose of this research is investigating the
relationship between capital structure and financing in Corporations.
Statistical sample size of the research included 147 Corporations of Accepted
in Tehran Stock Exchange between 2009 and 2015 (A 7 year period). To test
the hypotheses of the research we used panel data method. Research findings
show that financial leverage and internal and external financing have a
positive and direct relationship. Despite this, findings show a direct and
significant relationship of capital structure and reverse and significant
relationship of internal and external financing in active companies in Iran`s
capital market.
Machine summary:
Keyword: Capital structure, internal and external financing, financial leverage * Corresponding author: Mohammad NazariPour Peer review under responsibility of UCT Journal of Management and Accounting Studies INTRODUCTION The environment that companies operate in it is developing and competitive.
Therefore, financial management can affect stockholders wealth and finally company`s value through making changes in factors such as determining interest distribution policy and selecting method of financing (Moradzadehfard & Faramarz, 2010).
Asadi & co (1390) investigated the relationship between capital structure and ownership structure in the corporations that are accepted into Tehran Stock Exchange in a research.
Their research results show that the relationship between net changes in total financing, net change in external financing and change in net secured operational properties from financial resources with cumulative abnormal output of stocks is significant, but unlike the prediction, it’s positive.
However, the relationship of bank financial and financing through capital market with companies output with high property growth (low) is significant and positive (negative).
Hence, first and second hypothesis of the research is confirmed in confidence level of 95 percent and shows the direct and significant relationship between capital structure (financial leverage) and internal and external financing of the active companies in Exchange.
Hence, first and second hypothesis of the research is confirmed in confidence level of 95 percent and shows the direct and significant relationship between capital structure (financial leverage) and internal and external financing of the active companies in Exchange.
Capital structure (financial leverage) a significant and direct relationship has with (internal and external) financing in Corporations of Accepted in Tehran Stock Exchange.