Open AccessComparative Evaluation of Financing Methods Based of ROA, ROE, Debt ratio, EPS and DPS in Automotive and Petrochemical Industry’ Companies Listed in Tehran Stock Market
Author(s) -
Amin Farmahini Farahani,
Roya Darabi
Publication year - 2015
Publication title -
environment conservation journal/environment conservation journal
Language(s) - English
Resource type - Journals
eISSN - 2278-5124
pISSN - 0972-3099
DOI - 10.36953/ecj.2015.se1653
Subject(s) - profitability index , debt ratio , debt to equity ratio , finance , business , debt , financial ratio , investment (military) , population , demography , sociology , politics , political science , law , nonprobability sampling
There is a doubt about benefit about eternal financing or financing through debt for maximizing the benefits. The purpose of the present study is to study profitability ratios in the selection of the method of providing financial resources through increasing capital and debt. The society under research is shareholding companies in Tehran from the year 1387 to the year 1392. According to the criteria for entering the society, in general, 67 companies were selected. Out of these 67 companies, 35 companies were selected out of the investment method and 32 were selected out of the debt method. The data are analyzed through descriptive statistics, non-parametric tests and SPSS 21 in the meaningful level of%05. This study will show that there is not a significant statistical difference between providing financial resources through the debt method or the investment method in the four variables of ROE, DPS, EPS, and Debt Ratio. However, in the variable of ROA, there is a significant difference between the two methods: (p=0.015). That is to say, the profitability ratio is higher in the companies that provide their financial resources through shares compared to the companies that provide their financial resources through debt.