Examining the Concurrent Effects of Specific Corporate Traits and Macroeconomic Variables on Capital Structure

  • Aso Esmailpour Ph.D. Candidate, Department of Economics, Faculty of Economics Management and Business, Tabriz University, Tabriz, Iran
  • Ali Sarkhosh Sara Ph.D. Candidate, Department of Economics, Faculty of Administrative Science and Economics, University of Isfahan, Isfahan, Iran
  • Mohammad Rahimpour Industrial Engineer, Tehran, Iran
Keywords: Capital Structure, Corporate Specification, Macroeconomic Variables

Abstract

The main purpose of this study is to investigate the effects of the specific characteristics of the company and the macroeconomic variables on the capital structure of the companies accepted in the Tehran Stock Exchange between 2007 and 2014 using the panel data approach. To measure specific characteristics of a company, the profitability ratio, payable dividends ratio and the stock price performance ratio were applied; also, variables such as GDP growth rate, exchange rate, inflation rate, interest rate and the ratio of the amount of bank credits as macroeconomic variables have been employed. The results of this research showed that in the whole industry, the variables of profitability ratio, the payable dividends ratio and the ration of the amount of bank credits have a negative and significant effect, and GDP growth rate has a positive and significant effect on capital structure. Similarly, the results show that the effects of specific corporate variables differ from macroeconomic variables on capital structure according to the type of industry.

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Author Biographies

Aso Esmailpour, Ph.D. Candidate, Department of Economics, Faculty of Economics Management and Business, Tabriz University, Tabriz, Iran

Aso Esmailpour is currently in the process of aquiring his Ph.D. in the department of economics at the faculty of economics management and buuisness at Tabriz University in Iran. Aso Esmail Pour’s area of interest is in the  Corporate Specification and Macroeconomic Variables.

Ali Sarkhosh Sara, Ph.D. Candidate, Department of Economics, Faculty of Administrative Science and Economics, University of Isfahan, Isfahan, Iran

Ali Sarkhosh is currently pursuing his Ph.D. at the Department of Economics, University of Isfahan. His research interests are in Macroeconomics, Public Finance, and International Economics.

Mohammad Rahimpour, Industrial Engineer, Tehran, Iran

Mr. Rahimpour has obtained an M.Sc. in Industrial Engineering from Kharazmi University, Tehran, Iran and he is currently exploring the research ares of Capital Structure and Corporate Specification.

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Published
2019-12-28
How to Cite
Esmailpour, A., Sarkhosh Sara, A., & Rahimpour, M. (2019, December 28). Examining the Concurrent Effects of Specific Corporate Traits and Macroeconomic Variables on Capital Structure. UKH Journal of Social Sciences, 3(2), 19-31. https://doi.org/https://doi.org/10.25079/ukhjss.v3n2y2019.pp19-31
Section
Research Articles