The Impact of Capital Structure on Corporate Performance

The present study was designed to gather evidence about the relationship between short-term debt, long-term debt with variables such as EPS, return on equity, return on assets and the ratio Q/B. This research was conducted in companies listed in Tehran Stock Exchange. Multiple linear regressions were used to test the hypothesis. In this study, 3 dependent variables, 4 control variables and 3 independent variables are used. Also, 12 hypotheses were provided for this study. The sample of the study consisted of 50 participate in a 5-year period of 2008 to 2012. The findings suggest that there is negative relationship between short-term debt, longterm debt and total debt with returns on equity. Also about four to six hypothesis it became clear that short-term debt and total debt to equity returns are negatively related. In testing hypotheses 7 and 9 showed that short-term debt, long-term debt and total debt is negatively associated with ROA. Also worth noting that in 10 to 12 hypothesis it is showed that there is negative relationship between short-term debt and total debt by Tobin's q.