The Effect of Inflation Rate on Financing of Company listed in Tehran Security Exchange (Debt Financing and Equity Financing)

The aim of this research is to answer this question:” How is the effect of inflation rate on finance (debt financing and equity financing)?” Based on research literature, many micro and macro factors affect financing and in this research, cost of capital rate, financial risk, proprietary ratio and total return rate are moderating variables. The population of research is all company listed in Tehran Security Exchange between the year 1381 and 1386. Sample is equal to population. For data analysis, by SPSS, we use simple and multiple regressions. The results show that inflation affects more on debt financing in comparison with equity financing. Also for debt financing, financial risk and proprietary ratio respectively have the most and least effect and for equity financing, financial risk has the most and total rate of return has the least effect.