Investigating the relation between refinancing, profitability, and capital structure in companies listed in Tehran Stock Exchange

Abstract

Inappropriate capital structure influences all areas of activity in every company or particularly in every small company. It can also result in incidence of problems like inefficiency in marketing of products, inefficiency and inability in suitably employing human resources, and so on. The present study was aimed at investigating the relationship between refinancing, profitability, and capital structure of the companies listed in Tehran Stock Exchange. The statistical sample was selected by the systematic removal method during 2009-2014. The study hypotheses were examined through linear regression; the results of which indicated that refinancing had a significant effect on financial leverage and profitability.