The Long-Term Impact of Financial Ratios, Profit, and Capital Structure on the Value of Companies Listed on the Tehran Stock Exchange

Alimadadi, Mahdi

doi:10.22075/ijnaa.2025.36880.5400

The Long-Term Impact of Financial Ratios, Profit, and Capital Structure on the Value of Companies Listed on the Tehran Stock Exchange

Document Type : Research Paper

Author

Mahdi Alimadadi

Department of Financial Management, Science and Research Branch, Islamic Azad University, Tehran, Iran

10.22075/ijnaa.2025.36880.5400

Abstract

Since the ultimate goal of investors in turning to the stock market is to increase wealth, and one of the ways to increase wealth is to increase the value of companies, it is necessary to provide information that can help them evaluate the activities and capabilities of business units and select the desired company for investment. Therefore, this study has attempted to examine the impact of driving factors on the value of companies listed on the Tehran Stock Exchange based on the panel data method. Therefore, this study examines the impact of debt ratios, capital expenditures, retained earnings, distributed earnings, dividend per share, and capital structure on the value of companies listed on the Tehran Stock Exchange during the years 2020-2024. For this purpose, after collecting the required information, statistical tests were conducted on panel data using SPSS and EVIEWS software to examine the research hypotheses, and the results obtained are presented. The results indicate a negative and significant relationship between the debt-to-total assets ratio, retained earnings, capital expenditures, and distributed earnings, as well as a positive and significant relationship between dividend per share and capital structure.

Keywords

company value

capital structure

earnings

capital expenditures

stock exchange