The relationship of ownership structure and capital structure with financial decisions in companies listed in the Tehran Stock Exchange

This study attempted to explore how ownership structure and capital structure are correlated with financial decisions taken in companies listed in the Tehran Stock Exchange. For this purpose, capital structure was measured by financial leverage and ownership structure was determined by two variables, institutional ownership and managerial ownership. Besides, financial decision was assessed through two variables, i.e. long-term and short-term financial decisions. This study was conducted using data from 60 companies operating in the Tehran Stock Exchange from 2010 to 2016 that were included in the research sample. The research hypotheses were tested using Stata software. The results revealed a significant relationship between managerial ownership and capital structure, while no significant relationship was found between institutional ownership and capital structure. It was also shown that there is a significant relationship between managerial ownership and long-term financial decisions and also between capital structure and long-term financial decisions.