The Effect of Corporate Asset Restructuring Sensitivity on The Target Leverage of Companies listed in Tehran Stock Exchange

• Main Authors: Hasan Valiyan, MohammadReza Abdoli, Ali Ostadhashemi
• Format: Article
• Language: fas
• Published: Alzahra University 2018-04-01
• Series: راهبرد مدیریت مالی
• Subjects: Corporate Asset Restructuring Sensitivity; Target Leverage Ratios; Speed of Adjustment Capital Structure
• Online Access: http://jfm.alzahra.ac.ir/article_3230_b29d5efddd6915e4916b6d47a41ef7ca.pdf

Achieving an optimal leverage is one of the main goals and priorities of corporate finance managers to achieve more revenue through cost management. Since the lack of an inappropriate capital structure in each company affects the different fields of company activity, it can lead to issues such as inefficiency and lack of codification of appropriate strategies for financing. The purpose of this research is investigating the effect of corporate asset restructuring sensitivity on the target leverage ratios of companies listed in Tehran Stock Exchange. The research period is 5 years from 2011 to 2015. The statistical population of this study is all of the companies listed in Tehran Stock Exchange. 102 companies were selected by systematic sampling. Based on this, 510 views were taken on the basis of the year-company. The results of this study showed that according to the variable coefficient and level of error, the sensitivity of asset restructuring, respectively, has a negative and significant relationship with the leverage deviation. It was also found that the first quartile companies (which are most sensitive to asset restructuring), adjusting their real leverage towards the target leverage at 85% per annum. Capital structure adjustment speed for the first quartile companies is 16% higher than the total companies surveyed.