The Effect of Economic Factors and Firm Characteristics on the Capital Structure of Listed Companies in Tehran Stock Exchange (TSE)

The main objective of this research is to investigate the effect of economic factors and firm characteristics on capital structure of companies listed in TSE. For this purpose، 92 companies in TSE have been selected as a sample for review using sampling screening method in the period 1380-1388. To conduct this study the، relationship between variables is teste using regression models with panel data To estimate the model، at first، Chow and Hausman test is used for choosing the best model among ordinary panel data، (fixed effect and random effect). In this study، three firm characteristics including asset structure، liquidity and firm size، and economic factors including inflation and economic growth is investigated. The survey result shows that there is a negative and meaningful relation between the companies'' capital structure with the liquidity and inflation. But، there is a positive and meaningful relation between the companies'' capital structure with the asset structure، size and economic growth.