The Determinant Factors of Capital Structure of Companies Listed in Tehran Stock Exchange using Hierarchical Theory

Decision making in determining the corporate capital structure is one of the issues which considering by the vast majority of financial managers and according to the direct effect on the value of company, it became a valuable and important issue in financial topics. This research aimed to investigate the determinates factors of capital structure on Tehran Stock Exchange through using both static and dynamic models to assess how variables affect investment returns, tangible fixed assets, net working assets, company size and profitability of the debt ratio. In order to achieve this goal, financial information of 101 listed companies in Tehran Stock Exchange for a period of 10 years from 2001 to 2011 were collected and also the model of least squares methods was applied to test hypothesizes. The results of this study confirm the basic theory of hierarchical decisions for static model capital structure listed companies in Tehran Stock Exchange. All independent variables considered in this model have significant relationship with the debt ratio which is provided in accordance with the theoretical foundations. But by the results of the hypothesis test dynamic model, only the positive impact of fixed assets and negative impact of net assets turnover were confirmed and negative impact of net assets in fixed asset turnover were confirmed.