Studying the Influence of Market Timing on the Capital Structure of Companies Listed on Tehran Stock Exchange

This paper aims to study the influence of market timing on the capital structure of companies listed on Tehran stock exchange. The descriptive analysis of market timing behavior in these companies during 2006-2011 was not sufficient to confirm market timing theory. In this research debt rate is dependent variable and market rate by share book value, profitability, size of company, and the rate of tangible assets to total assets are independent variables. Results of research prove that market timing theory cannot explain the financial behavior of the companies listed on Tehran stock exchange. In other words it is cannot be proved that the companies listed on Tehran stock exchange tend to increase the equity of shareholders through issuing new shares when the value of their market is high due to the influence of market conditions.