A Study of Change's Effects of Article 105, Direct Taxes Act on Capital Structure and Shared Profit for the Companies Accepted in Tehran's Stock Exchange (in the Selected Industries)

The current research is mainly intended to study the changes’ effects of Article 105 of the Direct Taxes Act، on capital structure and shared profit for the companies accepted in Tehran’s Stock Exchange since 1997 to 2013. Given the fact that article 105 of this Act has been modified in 2002 while it was a mandatory to implement it since 2004، the changes in capital structure، shared profits have been studied in this research by using a research event method for the years before and after these changes. In order to reach this objective، the independent variable of changes applied to article 105 of the direct taxes Act، it was considered as a dummy variable so that for the years before March 2003، zero was assigned while for the years after this date، 1 was assigned. With respect to the kind of the data and the current methods of statistic analysis، combined data method was used for estimating model parameters and studying hypotheses. The results from analyzing the data since 1997 to 2013 indicated that in a confidence level of 95%، the changes to article 105 of the Direct Taxes Act are directly related to shared profit (positive). In addition، the results indicated that there isn’t any meaningful relationship between changes applied to article 105 of the Direct Taxes Act and corporate capital structure.