Asian Journal of Research in Banking and Finance
Year : 2014, Volume : 4, Issue : 4
First page : ( 120) Last page : ( 127)
Online ISSN : 2249-7323.

Assessment of the Relation between financial leverage, firm's size and stability of the profit of companies registered in Tehran stock market

Jabari Hosein, Panahian Hosein, Jafari Mehryar

Dept. of Accounting, Kashan Branch, Islamic Azad University, Kashan, Iran

Online published on 15 April, 2014.

Abstract

This research studies the relation between the financial leverage, firm's size, kind of industry, and stability of the profit of companies registered in Tehran stock market. The method is objective oriented and applied and the data were collected descriptively and inductively and the plot is based on the aftermath. In the study, he theoretical principles of the object matter was obtained via libraries and papers. The community is companies registered in Tehran stock market and the method is systematic detection the SPSS soft were used to conduct the statistical tests first the data were described then the multi-regression model was used for the model estimations with coefficient table and “t “parameters. Finally the results of the hypotheses were obtained to determine the relation between the variables the regression strategy was used. The research was conducted in 2006–2011. The hypotheses included a positive relation between the financial leverage of the companies, firm sizes and profit stabilities the results showed that financial leverage has a positive relation with profit stability. Therefore the first hypothesis came true. Moreover firm's size has a positive relation with profit stability as a result the second hypothesis is also true. The author suggests using semi-successful and semi-poor companies in the tests (companies registered in Tehran stock market are successful companies).

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Keywords

Financial leverage, firm's size, profit stability.

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