Effects of Management Efficiency and Capital Structure and Size on Perception of Service Quality and Performance of Banks Listed in Tehran Stock Exchange

Organization performance and value promote through activities enhancing critical success factors. Research literature shows the effects of factors such as size, management style, relationships between incomes and costs, capital structure, and customer attitudes on organizational performance. This research investigates effects of size, management efficiency and capital structure on customer perception of service quality and financial performance as well as the effects of customer perception of service quality on financial performance, through three main hypotheses and some sub-hypotheses. Studied organizations consist of all banks listed in Tehran Stock Exchange in 2014. Furthermore, customer perception of service quality was evaluated by questionnaire answered by some of the bank customers. Structure equation modeling based on variance approach and Smart PLS software were used for testing research conceptual framework. Findings show that capital structure, size, and management efficiency are effective on customer perception of service quality and financial performance. Furthermore, there is a significant relation between customer perception of service quality and financial performance. Positive relation between size and customer perception of service quality for providing more facilities in larger banks, positive effects of capital structure from agency theory and trade off theory perspectives and also, effect of management efficiency on customer perception of management efficiency effects on productivity promotion and customer satisfaction have been analyzed and explained.