Evaluating the Relationship between the Structures and Past Information with Capital Structure

Author's Name: Hoseien Heydari & Dr. Hassan Ghodrati
Subject Area: Social Science and Humanities
Subject Business Management
Section Case Studies


Profitability, Corporation size, Book-to-market ratio, Capital structure.


This study evaluates the relationship between the structure and past information with capital structure between the listed corporations on Tehran stock exchange. To do the study, a sample of 114 corporations from ones listed on exchange was selected by using the stratified random sampling. The study was done during 2007-2012 that 324 observations were totally used to research period. The statistical method Panel data regression was used in this study. For the purpose of study four hypotheses were proposed that all of them were approved. The results show that there is a direct relationship between profitability, book-to-market ratio, corporation size and the ratio of collateral assets with capital structure. It means that capital structure will be increased by increasing independent variables and vice versa.

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