Relationship Between Macroeconomic Variables and Capital Structure in the Iranian Capital Market

This study investigates the relationship between macroeconomic variables and the structure of capital in the Iranian capital market. Undoubtedly, today the largest amount of capital in the world is exchanged through capital markets in countries, and the economy and the capital market are undoubtedly and strongly influenced by each other. And what is especially important for investors is to increase their wealth in the shortest time, and with the separation of company management from investors and the discussion of agency theory, management decisions benefit from a high reflection among shareholders, including this decision. Financial decisions and financing strategies of managers in companies, according to the decisions of managers in the type of financing, impose different costs on the company, which ultimately affects the profitability and efficiency of companies. Discussion of capital structure and choice of type of financing is one of the concerns of managers in companies, hence the researcher has done much research in relation to choosing the optimal capital structure and type of financing and many factors inside and outside the company that affect it. Macroeconomic factors are among these external factors. Given that in developing countries, including Iran, these macroeconomic variables have been very volatile during the last three decades, it is clear that these fluctuations have an adverse effect on the economy and the capital market will undoubtedly affect the decisions of managers. They have cast a shadow and made them have serious doubts about this.

Keywords:

Economy , Stock market , Financial Strategy , Developing countries , market