The Effect of Financial Leverage on the Growth of the Companies Listed in Tehran Stock Exchange

Abstract

This study examines the effect of financial leverage on the growth of companies listed in Tehran Stock Exchange. The study population includes pharmaceutical companies listed in Tehran Stock Exchange. The study interval is 2010-2014. Using variable data software brings a new approach, and is calculated by Excel. Variables of the study were calculated by data of Rahavard Novin Software and Excel. Data was analyzed by SPSS using descriptive and inferential statistics such as the Kolmogorov-Smirnov test, Pearson correlation and linear regression in order to test hypotheses of the study. According to the tests and analyses, it could be concluded that hypotheses were accepted. Thus, we can claim that there was an inverse relationship between leverage and company's growth.