The Effect of Capital Structure on Firm Value , The Rate of Return on Equity and Earnings Per Share of Listed Companies in Tehran Stock Exchange

Abstract

Decisions about capital structure is one of the most challenging and the most difficult issues facing the company capital structure of a company is a combination of debt and equity. In this study, the effects of capital structure of the company value, the rate of return on equity and earnings per share of listed companies in Tehran Stock Exchange during the years 2010-2014 were studied, due to limitations in total, 55 companies, for example, was selected.The data obtained through library research and software Rahavard new collection for this purpose financial leverage (debt ratio) as a variable alternative decisions, capital structure intended to study hypotheses were examined. In order to test the hypothesis of multiple regression analysis and evaluation of the significance of values and model of 95% of F-statistics and t-test were used, the results suggest that the rate of return on equity has a negative impact significantly on financial leverage . Also, the market value of the company's earnings per share significant effect on the financial leverage it.

Keywords: financial leverage, the market value of the company, earnings per share, return on equity