Pages: 83-88

Abstract

The principal objective of this study is to explore the relationship between firm growth, investment in fixed assets and financial leverage in companies listed on Tehran Stock Exchange (TSE). The independent variables of this research are investment in fixed assets and firm growth and the dependent variable is financial leverage. The sample size of this study consists of 95 companies listed on Tehran Stock Exchange during the years 2010 to 2015 and multivariate regression has been used for testing the hypotheses of this study. Finally, EXCEL and E-views software are used to test the hypotheses of research. The results of this study indicate the ineffectiveness of firm growth on financial leverage. These results also show a positive and significant relationship between investment in fixed assets and financial leverage in companies listed on Tehran Stock Exchange.