Financial Facilities Capacity in Tehran Stock Exchange Listed Companies

Financial facilities capacity is the amount of debt a firm can repay in a timely manner (from available means or resources) without jeopardizing its financial viability. Tehran stock exchange (TSE) listed companies have standard financial structure due to listing requirement that they are committed to follow. But some of them have paid penalty for delay in reimbursement. It is the signal that they passed their debt capacity. In this paper، TSE listed companies without reimbursement delay penalty have been used to be modeled. The main objective of this survey is to investigate the factors that have impact on the company’s debt capacity. The sample of this study consists of 128 companies listed in Tehran Stock Exchange for a period of 2004 – 2009. Data structure is unbalanced panel data form. For testing the hypotheses، Generalized Least Squares (GLS) and Ordinary Least Squares (OLS) models were applied for the sampled companies in 16 different industries. Finally this study presented models that use financial variables to determine debt capacity for the companies under study.