Investigating the Effect of Different Methods of Financial Supply on the Profitability Ratios of Companies Accepted in Tehran Stock Exchange

Abstract

One of the most important stimulating factors that have an accelerating role in achievement the countries to stage of development are capital adequacy and financial supply. To supply required capital, there are different ways. These ways mainly consist of the use of debt, the use of shareholders’ capital in the form of common stock, the use of retained earnings, the combination of these methods and etc. Different ways of financial supply have various risks and efficiencies and different economic, accounting, functional, liquidity and profitability variables of the company are markedly changed under the influence of different methods of financial supply. In this study, the influence of different conventional methods of financial supply (retained earnings, common stock and debt) as independent variables on profitability of companies (return on asset, operating profit margin, net profit margin and return on equity) as dependent variables has been examined.