Experimental Explanation of Capital Structure Theories to Determine the Dominant Pattern in Iran's Capital Market (with emphasis on pharmaceuticals, and foodstuffs other than sugar industries)

The aim of this research is the experimental explanation of capital structure theories to determine the dominant pattern in Iran's capital market (with emphasis on pharmaceuticals, and foodstuffs other than sugar industries). The research period was 2006-2016 and in pharmaceuticals industry, 20 companies, in industry of foodstuffs other than sugar, 15 companies were selected as statistical sample. The pooled/paned regression models were applied to analyze of research data in econometric software EViews 9. In the study, three criteria such as book leverage (LEV1), market leverage (LEV2), and long-term leverage (LEV3) were applied to determine of capital structure. Also, variables such as DPS to EPS (DPO), return on equity (ROE), business risk (BR), asset structure (TANG), liquidity (LIQ), market to book value (MB), company size (SIZE), non debt tax saving (NDTS), tangible assets to debt ratio (TADR), debt tax shelter (DTS), and interest coverage (IC) were exerted to measure of effective factors on capital structure based on different theories.