Accounting and Auditing Studies

Accounting and Auditing Studies

Relation Capital Structure and Managerial Ownership with Firm Performance In the Tehran Stock Exchange`s Listed Companies

Document Type : Original Article

Authors
Mohsen Hamidian 1
Seiedeh Mahsa Hosseini Veleshkolaiy 2
Alireza Abbasi 3
1 Assistant professor of accounting Islamic Azad University, South Tehran Branch, Iran
2 M.A, ccounting, Islamic Azad University, Central Tehran Branch, Iran
3 M.A, Auditng, Allameh Tabatabai University, Iran
10.22034/iaas.2020.107635
Abstract
In this thesis, the relationship between capital structure and management ownership and the companies listed in Tehran Stock Exchange was tested and evaluated for a period of 5 years (2009-2013) with a sample of 108 companies.The research hypothesis was tested based on the proposed model, using multiple regressions. For this purpose, the component of capital structure was considered as the independent variable, the component of management ownership as a moderating variable and the component of corporate performance as the dependent variable (Tobin's Q ratio, the return on shareholder’s equity and the ratio of stock market value to book value of shareholder’s equity).
The results showed that due to the concentration of management ownership, the management ownership will moderate the relationship between capital structure and corporate performance index (Tobin's Q ratio) and this adjustment is a direct and positive. Additionally testing hypotheses suggest that there is no  relationship between the relationship between capital structure and the return on shareholder’s equity (ROE) and the ratio of stock market value to book value of shareholder’s equity (M/B) because of  managerial ownership concentration.
Keywords
Capital Structure
Management Ownership
Tobin's Q ratio
Company Performance
Return on Shareholder’s Equity
Stock Market Value to Book Value of Shareholder’s Equity
Accounting and Auditing Studies
Volume 9, Issue 33
Spring 2020
Pages 75-92