Impact of Debt Financing and Effective Debt Management on Performance Assessment in Tehran Stock Exchange

Abstract

Making decision about the capital structure is one of the most difficult and challenging issues facing companies. In this direction, the aim of this study is to investigate the impact of financing on evaluating the performance of companies listed on the Stock Exchange in Tehran through debt and the optimal structure of debt. The research sample is consisted of 179 companies during years 2010 to 2013. Here, the research method is descriptive and in terms of purpose is functional. Multivariate regression analysis, based on the method of combined data was used for testing hypotheses. The research results showed that there is a negative and significant relationship between financing through debt and performance. Also, there is a positive and significant relationship between the optimal structure of debt and the performance of the company, and difference of the average of efficiency, between optimal and non-optimal structure of debt is 0.182 and meaningful.

DOI: 10.5901/mjss.2015.v6n6s6p101