The effect of capital structure on firm efficiency and product competitive market of Listed Companies in Tehran Stock Exchange

Subject Areas : Journal of Investment Knowledge

Bahram Korzbor ¹ (Master of accounting, Department of accounting, Shahr-e-Qods Branch, Islamic Azad University, Tehran, Iran)
Shadi Shahverdiani ² (Assistant Professor, Department of business administration, Shahr-e-Qods Branch, Islamic Azad University, Tehran, Iran (corresponding author))

Received: 2017-03-12 Accepted : 2017-09-06 Published : 2017-10-23

Keywords: Capital Structure, Efficiency, Product Competitive Market,

Abstract :

Many theorists of financial markets believe that capital structure has a significant impact on corporate efficiency and product competitive market. In this regard, the impact of capital structure on firm efficiency and product competitive market has been studied at Tehran Stock Exchange in the following research. Therefore, in order to examine the variables of capital structure, efficiency, and product competitive market, the ratio of financial leverage, method of data envelopment analysis, and herfindahl-hirschman index and Tobin’s Q index to be used respectively. On this basis, data of 92 listed companies in Tehran Stock Exchange over the period of 2005 to 2012 was gathered and were studied by econometric models and regression method. The results show that capital structure has significant effect on efficiency and product market competition (According to the Tobin’s Q index) and The results show that capital structure has no significant  effect on product market competition (According to the herfindahl-hirschman index).

References:

*       اعتمادی و منتظری (1392)،  بررسی عوامل موثر بر ساختار سرمایه شرکتهای پذیرفته شده در بورس اوراق بهادار تهران با تاکید بررقابت بازار تولید(( فصلنامه برسی های حسابداری وحسابرسی،دوره 20، شماره 3، صص1-26

*       ستایش، محمدحسین و جمالیانپور، م (1388). سودمندی ساختار سرمایه و تغییرات آن بر پیشبرد راهبردهای مالی شرکتهای پذیرفته شده در بورس اوراق بهادار تهران. بررسیهای حسابداری و حسابرسی ، 18(64): 90-73.

*       ستایش، محمد حسین؛ کارگرفردجهرمی، محدثه (1390). «بررسی تأثیر رقابت در بازار محصول بر ساختار سرمایه». فصلنامه پژوهش‏های حسابداری مالی، سال اول، شماره اول، صص 9 تا 31.

*       سجادی، سید حسین؛ محمدی، کامران؛ عباسی، شعیب (1390). «بررسی تاثیر انتخاب ساختار سرمایه بر روی عملکرد شرکتهای بورسی». فصلنامه علمی پژوهشی حسابداری مالی، سال سوم، شماره نهم، صص 19 تا 38.

*    نمازی، محمد وکرمانی، احسان (1387)، تاثیر ساختار مالکیت بر عملکرد شرکتهای پذیرفته شده در بورس اوراق بهادار تهران ، بررسی‌های حسابداری و حسابرسی، شماره53، صص 100-83.

*       نیکبخت، محمد رضا؛ پیکانی، محسن (1389). «بررسی رابطه بین ساختار سرمایه و معیارهای بازار عملکرد در شرکت‏های پذیرفته شده بورس اوراق بهادار تهران». مجله پژوهش‏های مدیریت، سال سوم، شماره نهم، صص 57 تا 76.

*       وکیلی فرد ، موسوی (1393( ،ساختار سرمایه، رقابت در بازار محصول و عملکرد شرکت، فصلنامه دانش حسابداری مالی،دوره1،شماره3،صص65-84

*       Aggarwal, R. Kyaw, N. (2010) "Capital Structure, dividend policy and multi nationality: Theory versus empirical evidence". International Review of Financial Analysis, Vol.19.

*       Brander, J. A., and T. R., Lewis, (1986), "Oligopoly and Financial Structure: The Limited Liability Effect", American Economic Review, Vol. 76, pp. 956-970.

*       Brander, J. A., and T. R., Lewis, (1986), "Oligopoly and Financial Structure: The Limited Liability Effect", American Economic Review, Vol. 76, PP. 956-970.

*       Castelli, L., Pesenti, R. and Ukovich, W., (2001) "DEA-like models for efficiency evalutions of specialized and interdepent units", European Journal of Operational Research, 132, 274-286.

*       Fosu, S., (2013). "Capital structure, product market competition and firm performance: Evidence from South Africa ". The Quarterly Review of Economics and Finance, PP. 140-151.

*       Guney, Y.; Li, L. and R., Fairchild, (2011), "The Relationship between Product Market Competition and Capital Structure in Chinese Listed Firms", International Review of Financial Analysis, Vol. 20, PP. 41-51.

*       Harris, M. and A., Raviv, (1991), "The Theory of Capital Structure", Journal of Finance, Vol. 46, pp. 297-355.

*       Hussain, M. N. and Gull, S. (2011). Impact of Capital Structure on Stock Price of Cement Sector in Pakistan, Journal of Contemporary Research in Business, Vol. 3, No. 3, pp. 778-798.

*       Jensen, M.C., Meckling, W.H., (1976). Theory of the firm, managerial behaviour, agency costs and ownership structure. Journal of Financial Economics 3, 305-360. 33) Jordan, M.C., Lowe, J., Taylor, P., (1998).

*       Jermias, Johnny, (2008), the relative influence of competitive intensity and business strategy on the relationship between financial leverage and performance corporate, the British Accounting Review, 40, PP 71-86.

*       Prieto, A.M. and Zofio, J.L. (2007) "Network DEA efficiency in input-output models: With an aPPlication to OECD countries", European Journal of Operational Research, 178, 292-304.

*       Saloner, Garth, Andrea Shepard and Joel Podolny (2001), Strategic Management, John Wiley & sons, newyork.

*       Smith, D.; Jiango, Ch and Hamish, Anderson (2008): The relationship between capital structure and product markets: Evidence from New Zealand.

*       Tian, G.G, Zeitun, R, (2007), "Capital Structure and Corporate Performance", Australasian Accounting Business and Finance Jurnal, N 4, PP 40-61.

*       Yu, M.-M., Lin, E.T.J. (2008) "Efficiency and effectiveness in railway performance using a multi-activity network DEA model", Omega (36), 1005-1017.