The Effects Financial Development on Enterprises Incomes Growth in Iran

The purpose of this paper is to evaluate the relationship between financial development and economic growth. To achieve this, we considered the rate of income growth of selected firms as the dependent variable and investigated the effect of the ratio of credit banking expansion to private sector to GDP as an indicator of financial development on it. The method is descriptive and analytical. Time series data of the central bank and cross-sectional data of twenty four active company in the Tehran Stock Exchange during 1390-1396in three distinct groups of petrochemicals and oil, cement and medical products has been extracted from Tehran Stock Exchange organization publishment and by theorical and experimental principals, appropriate model in the form of regression equation based onthe theory of financial management company has been estimated by panel data method .The findings show that financial development has been significant positive effect on economic growth in three selected groups.