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The Study of the Relationship between Product Market Competition and Capital Structure of Companies Which is accepted in Tehran Stock Exchange

Author Affiliations

  • 1Department of Accounting and Management, Kashan Branch, Islamic Azad University, Kashan, IRAN

Res. J. Recent Sci., Volume 3, Issue (1), Pages 33-37, January,2 (2014)


The aim of this study is to investigate the relationship between product market competition and capital structure of companies which is accepted in Tehran Stock Exchange. The population of study is selected companies listed in Tehran Stock Exchange during the 9-year period from1382 to 1390. Through the populations considered in the Tehran Stock Exchange, a total of 150 companies were selected by simple random sampling method as sample in this study. Capital structure is the independent variable in this study, which it's reagent index according to theoretical considered in this study is intended to debt ratio. The dependent variable in this study is the product market competition which it's index is considered Q2bin, HHI. Also the control variables affecting this study were selected Company size, dividends, interest risk, profitability and non-debt tax savings. The scope of this study includes: a 9-year period from 1382 until the end of 1390 and statistics on these variables are an annual gathering. The results showed that at the corporate level and between the industries, there was no significant correlation between the debt ratio and the earnings volatility (risk-benefit), but four other control variables have a significant relationship with debt ratio.


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