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Investigating the Relationship between Capital Structure and Cash Resources Returns in the accepted Companies in the Securities Market

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  • Abbas Rezazadeh Karsalari
  • Mohammad Tavoosi Asl
  • Sadegh Ahmadipour

Abstract

The purpose of determining the capital structure is to specify the composition of each company's financial resources in order to maximize the shareholders' wealth. Therefore, the present study examines the relationship between the effect of capital structure and the return on cash resources. The research population of this study includes the companies accepted in Tehran Stock Exchange during a five-year period (years 2010-2016). Finally, based on the research constraints and using the systematic elimination method, the information of 125 companies was gathered. The target research is an applied research. In terms of the type of research project, this research is post-event as it relies on the historical data and its derivation method is inductive and correlational. This research consists of three main hypotheses. In this research, linear regression has been used to test the hypotheses of the research. Eviews software has been used to analyze the data and test the hypotheses. After testing the research hypotheses, which were done separately for each hypothesis, we concluded that there is a meaningful relationship between cash-flow, the ratio of profit before interest and taxes and the ratio of market value of assets / book value of assets and the capital structure.

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  • Abbas Rezazadeh Karsalari & Mohammad Tavoosi Asl & Sadegh Ahmadipour, 2017. "Investigating the Relationship between Capital Structure and Cash Resources Returns in the accepted Companies in the Securities Market," International Journal of Academic Research in Business and Social Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Business and Social Sciences, vol. 7(9), pages 223-231, September.
    • Handle: RePEc:hur:ijarbs:v:7:y:2017:i:9:p:223-231
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    References listed on IDEAS

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