Abstract

This study review the effect of various methods of financing on share yield of accepted firms in the Stock Exchange of Tehran during 2006 to 2010. For this reason, the firms which were financed through loan or increased capital have been selected and based on noted data on financial statements of them. The effect of two given financing methods (loan and increased capital) on return of their equities following recognition normality of studied variables was analyzed by Kolmogorov-Smirnov test, correlation analysis and regression analysis. The state of accepted firms in Stock Exchange of Tehran compared to the effect of various financing methods on their return rate of equalities during the given years has been reviewed. The results of the research show that it is not possible to claim that financing through increased capital has positive influence on share yield of accepted firms in the Stock Exchange of Tehran. On the other hand, it could be claimed that, financing through loan has positive influence on share yield of accepted firm in the Tehran Stock Exchange.

Key words: Financing, share yield, loan, increased capital, Tehran Stock Exchange.

Abbreviation

JEL codes: G32, C13, C22.