Value relevance of accounting information in corporate financing decisions: evidence from Iran

This study examines how accounting information (profitability، revenues، profitability and revenue growth، working capital and times interest earned) affect financing decisions. We used a sample of 100 companies listed on Tehran stock exchange (TSE) over a seven-year period (2004-2010). The empirical results indicate that accounting information is relevant in financing decisions، but there is different predictive power between those accounting variables. Profitability has the most effect on decisions، and liquidity، revenues and times interest earned are ranked second to fourth