The Effect of Environmental Performance of Companies Listed on Tehran Stock Exchange on Debt Ratio

The environmental performance of companies plays an important role in the process of corporate development. Because environmental issuesreduce environmental costs associated with pollution. Therefore, in the presentstudy, the effect ofstock market liquidity on the liquidity of bankslisted in Tehran Stock Exchange was investigated. The purpose of the study is applied studies and the research method is descriptive‐analytical. From all listed companies in Tehran Stock Exchange due to inclusion criteria during the years 2010 to 1977, were selected by systemaƟc eliminaƟon method. The results show that the environmental performance of listed companies has a positive and significant effect on the debt ratio.