Relationship between Performance and Information Asymmetry with Capital Structure in Companies listed on Tehran Stock Exchange

• Main Authors: hasan ghalibaf- asl, zahra Abdolmaleki
• Format: Article
• Language: fas
• Published: Alzahra University 2014-08-01
• Series: راهبرد مدیریت مالی
• Subjects: Capital Structure; Firm performance; Asymmetric information
• Online Access: http://jfm.alzahra.ac.ir/article_983_33e44f9ec6e367d77d50f2d8fdf816f5.pdf

In this study, following Tian and Zeitun’s researches on Jordanian companies, the relationship between performance and asymmetric information is surveyed in the capital structure of listed companies on Tehran Stock Exchange during the period 2001/03/19 to 2012/03/19. Due to sampling conditions and limitations 60 companies were selected as samples. In this study, the ratio of debt for capital structure is used as the independent variable and the criterion bid-Ask spread is used according to Venkatesh and Chiang’s model for information asymmetry and the criterions Q Tobin, stock returns and P/E is used for the companies’ performance as the dependent variable. The pooled regression and Excel and Eviews software programs are used to estimate the test of model. The results indicate a significant relationship between all independent variables and the dependent variable. Summarizing the three first hypotheses suggests that performance has significant correlation with capital structure. Also according to the fourth hypothesis, there is a significant positive relationship between information asymmetry and capital structure.