Future Value of Firm, Capital Structure, Dividend Policy, and Profitability in Listed Companies on Tehran Stock Exchange

Abstract

The relationship between Future Value of Firm with capital structures, dividend policies and profitability of listed companies on Tehran Stock Exchange has been analyzed in this research. Two hypotheses have been considered: The relation of capital structure, dividend policies and profitability with the value of firms is studied in the first hypothesis, and the relation of variable Future Value of Firm has been considered in the 2nd hypothesis. For analysis of the 1st hypothesis a multi-variable linear regression model, and for the 2nd hypothesis, a Logistic model is used. The statistical population is the listed Production Companies on Tehran Stock Exchange within the years 2001 to 2008. To define the statistical sample, the systematic elimination method has been used, which was considered in 110 companies. The results obtained from analysis data infer on the confirmation of both hypotheses through using Panel data. There is a significant as well, reciprocal relation among the dividend policies and the Firm's value. There is also a significant and positive relation among the considered variables with future values of Firms. Moreover, the findings have showed the probability of increasing the Future Value of Firm with increasing the relations of capital structure, dividend policies and probability.

Keywords

• Firm Value; Capital Structure; Dividend Policy; Profitability