Relationship between Macroeconomic variables and capital structure in Teharan Stock Exchange

Year 2015, Volume: 36 Issue: 3, 1776 - 1785, 13.05.2015

Samira Vafaee Dizaji , Hoda Amiri Ghadi Mahdi Hajian

Abstract

Abstract. Economical information in countries accounts as one of important and effective information as well as one of the most applicable information in capital market of countries. Financial manager of companies consider all dimensions in making descion and planning in optimizing capital structure and one of the dimension is economical condition. We used rate of inflation, rate liquidity, interest rates, and the dollar exchange rate as macroeconomic and their relationship with capital structure which is debt ratio. Therefore, we used information of companies in the Tehran stock exchange and site of Central bank during 2005 and 2013. Following, we used SPSS software in order to test of hypotheses. Results of research indicated that there was not significant relationship between macreconomic variables and capital structure in capital market of Iran; while, by entering controlling variables such as return on total assets ratio, return on equity (ROE), earnings per share (EPS) ratio and fixed assets ratio the relationship become significant. It showed that there is instability in the economic situation of the country and financial manager cannot proper estimate in their financial decision.

Keywords

Inflation rate, Liquidity rate, Capital structure, Dollar rate

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