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Relationship between Capital Structure and Economic Performance Separated by Ownership in Listed Companies in Tehran Stock Exchange

Author

Listed:
  • Mostafa Hosseinzadeh
  • Saeid Valadbeigi
  • Amin Azizi
  • Sanam Bakhtiarnezhad

Abstract

The main purpose of this research is to study the relationship between capital structure and firms’ economic performance separated by ownership. This study measures capital structure by company’s total liabilities and total assets; and economic performance and ownership structure are weighted by the two dimensions of institutional and corporate ownerships. Research used systematic elimination sampling method. Research statistical population included listed companies in Tehran Stock Exchange (414 companies) within 2009 to 2012. Sample volume determined as 88 companies. Research objectives are applied and it is considered as a correlation study. Research data collected through using stock exchange software. Further, collected data analyzed using SPSS software. The research used descriptive and inferential statistics (Spearman test). Results of research hypotheses show that economic performance in companies with institutional ownership is inversely related to capital structure; whereas, in non-institutional economic ownership (corporate ownership) no correlation is seen with capital structure.

Suggested Citation

Handle: RePEc:air:journl:v:3:y:2016:i:2:p:147
DOI: 10.5281/zenodo.17414269
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