Examining the Effect of Capital Structure on the Future Stock Value

Present study is aimed at the investigation of examining the effect of capital structure on the future stock value with emphasis on the type of industry. Listed active companies of cement, automobile and pharmaceutical industries in Tehran stock exchange during the years 2006 to 2009 is statistical society of this study. In this paper, spearman and regression analysis used for analyzing data and examining the hypotheses. This study with the view of method, survey from the viewpoint of type, analysis and in terms of purpose is applied. Findings provide that capital structure has no effect on the future stock value of companies listed in Tehran stock exchange (cement, automobile and pharmaceutical industries). This criterion isn’t useful in forecasting future value and don’t have considerable power of explanation. On the basis of the results, using financial leverage in the evaluations to forecast future value of stock isn’t useful.

capital structure, future stock Value, financial leverage, stock exchange