The Effect of Capital Structure on Profitability in Tehran Stock Exchange

To do this, a sample of 100 firms accepted in Tehran Stock Exchange (TSE) during the period of 1380-1385 were examined. We employed the Panel Data regression framework. The results reveal a positive relation between the ratio of short-term debt to total assets and profitability. However, a negative relationship between the ratio of long-term debt to total assets and profitability was found. With regard to the relationship between total debt and return rates, the results show a positive association between the ratio of total debt to total assets and profitability.