Open AccessThe relationship between the components of the capital structure and the company's economic value added at different stages of the life cycle of listed companies in Tehran Stock Exchange
Author(s) -
Sedigheh KarimiZarchi,
MohammadAli Dehestani,
Alireza Farimani
Publication year - 2019
Publication title -
journal of management and accounting studies
Language(s) - English
Resource type - Journals
ISSN - 2693-8448
DOI - 10.24200/jmas.vol4iss02pp1-6
Subject(s) - economic value added , stock exchange , capital structure , maturity (psychological) , earnings , shareholder value , business , shareholder , life cycle hypothesis , cost of capital , value (mathematics) , equity (law) , finance , economics , monetary economics , debt , corporate governance , macroeconomics , microeconomics , profit (economics) , psychology , developmental psychology , machine learning , computer science , political science , law
The most important decisions of corporate managers are their capital structure decisions. These decisions have a direct impact on the value of the company and maximize shareholder wealth. Economic Value Added is a new way of evaluating performance which in recent years has been a lot of attention as effective as a method of measuring corporate value and shareholder interests is reflected. However, the value added of different companies with different earnings even if they are similar. On the other hand, based on the life cycle hypothesis stages of life, including birth, infancy, growth, maturity and decline. Thus, it can be argued that the decisions of external financing (debt - equity) will be affected by a critical stage in which the company. Methodology: The aim of this study was to investigate the association between firms' capital structure with EVA considering the period of life that is in the period 2008-2013 and for 1452 year is now. Results: To test the hypothesis of multivariate regression analysis using panel data. Conclusion: The results indicate the existence of external financing priority on growth, maturity and decline stage is the absence of this priority.