Study the Effect of Sales Growth on the Determinants of CapitalStructure of Listed Companies in Tehran Stock Exchange

The purpose of this study is determining the most important factors affecting capital structure of firms accepted in Tehran Stock Exchange for 2005-2009 so a sample consisting of 60 companies listed in TSE had selected. Variables studied in this paper include real assets, firm size, sales growth, risk and effective tax rate. The impact of sales growth on the relationship between the mentioned variables and capital structure had examined, too. Results show that real assets variable, company size, sales growth, operational risk and effective tax rate associated with total debt ratio are significant. Replacing long-term debt with total debt leads to the same relationship between these factors expect for company size. Among these variables relationship between assets and debt ratios are strongest. Classification companies results based on sales growth on same period showed that capital structure highly affected by sales growth and there is meaningful difference between companies with low sale growth rate and those that a high sales growth rate.