Explaining the Effect of the Dynamics of the Capital Structure, Profitability and Economic Value Added on EPS of the Company Listed in Tehran Stock Exchange

Document Type : Original Article

Authors

1 Associate Prof, Faculty of Management and Accounting, College of Farabi, University of Tehran, Qom, Iran

2 MSc., Faculty of Management and Accounting, College of Farabi, University of Tehran, Qom, Iran

3 Phd. Student, Faculty of Management and Accounting, College of Farabi, University of Tehran, Qom, Iran

Abstract

EPS is one of the favorite statistics to investors and financial analysts. On the other side determine the best combination of company resources or the capital structure is one of the most important financial issues that managers should consider to maximize shareholder wealth. In addition, EVA is a measure of effective management policies quality and as a reliable indicator of future growth of the company worth. The purpose of this research is to explain the effect of the Changes of capital structure, profitability and EVA on EPS of companies listed on the Tehran Stock Exchange. The statistical population consists of companies listed on the Tehran Stock Exchange and examined sample are 55 companies from different industries in during the 1389 till 1394. The dependent variable of this study is EPS. For hypothesis testing, multiple regression models based on panel data techniques is used and is done through econometric software Eviews. The results indicate that the capital structure of the variables, which between them long-term debt ratio variable coefficient without the benefits of the end of the service to the property have been a negative relationship with EPS and the other had a positive and significant relationship between capital structure variables with EPS. As well as there is positive and significant relationship between the profitability of the company and the EVA with EPS.

Keywords

Accounting and Auditing Research
Volume 11, Issue 41
April 2019
Pages 5-20

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