Company Characteristics and Capital Structure

Ability of companies to identify potential internal and external financing resources is an important factor fortheir growth and improvement. Main objectiveof companies is to maximize their shareholders'' wealth، and capital structure is one of the effective factors for this purpose which requires optimal use of financial resources to create proper returns regarding risk taken by companies. Based on data derived from a sample of 157 companies listed on Tehran Stock Exchange (TSE) from 1383 to 1389، this study examined relationship between company characteristics and capital structure. Approach of this study is descriptive-correlative، and panel data statistical method was used to test the hypotheses. Test results showthatsize، tangibleassets، andbusiness risk of the company have a significant positive relationshipwithcapital structure; and growth opportunities of the company has a significant negative relationship with it. However، the results do not show any meaningful relationship between age and industry of the company and capital structure.