Open AccessA survey on the effects of the exchange rate changes and financial flexibility on the usage of financial leverage in accepted companies of Tehran stock exchange
Author(s) -
Reza Zare,
Hamid Mahmoodabadi,
Hoda Kiafar,
Moslem Gheisari
Publication year - 2013
Publication title -
international journal of finance and banking studies
Language(s) - English
Resource type - Journals
ISSN - 2147-4486
DOI - 10.20525/ijfbs.v2i2.144
Subject(s) - leverage (statistics) , stock exchange , business , finance , exchange rate , debt to capital ratio , flexibility (engineering) , economics , mathematics , statistics , return on equity , equity ratio , management
In the present study we try to examine the exchange rate changes and financial flexibility as the economic stable indexes on the financial leverage use in the companies so the main issue in this study is to define the financial leverage relation with exchange rate changes and financial flexibility. That is why 88 companies of the companies listed in Tehran stock exchange in 2005–2011. The study type is descriptive–correlative and the multivariable linear regression was used to analyze the data. The findings from the hypotheses test state there is a significant relation between financial leverage and financial flexibility while there isn't relationbetween financial leverage and exchange rate changes.