Author/Authors :
Pourali، Mohammad Reza نويسنده , , Samadi، Mahmoud نويسنده Assistant Professor of Accounting, Department of Accounting, Tonkabon Branch, Islamic Azad University, Tonkabon , , Karkani، Ensieh نويسنده M.A. Student of Accounting , Department of Accounting, Science and Research Branch, Islamic Azad University, Guilan ,
Abstract :
ABSTRACT: Many companies are faced with financial distress and bankruptcy, during the global financial crisis in recent years. A firm’s financial leverage has been recognized as one of the main factors that explain a firm’s financial distress.The second main factor is capital intensity, measured by total fixed assets scaled by total assets. The purpose of this research is to study is the relationship between capital intensity and financial leverage with degree of financial distress. Statistics society are included the companies listed in Tehran Stock Exchange during the period 2007-2011.After sampling in deleting systematic 32 companies as 160 years-companies are selected. Degree of financial distress was measured by modified Altman’s Z-Score. The analysis of data in both side of descriptive statistics and inferential by Eview6 system is done. The findings suggest a negative significant relationship between financial leverage and degree of financial distress (modified Altman’s Z-Score). There is a negative significant relationship between capital intensity and degree of financial distress and the results showed that between capital intensity and financial leverage with degree of financial distress (modified Altman’s Z-Score) of the companies listed in Tehran Stock Exchange is not significant relationship.
