Investigating the Relationship between Financial Capabilities and Corporate Performance (Case Study of Companies Accepted in Tehran Stock Exchange)

The aim of this research is surveying the effect of financial solvency levels and company performance of companies listed in Tehran Stock Exchange. Multivariate regression model and E-views econometric software were used for research pooled data analysis. In this research the dependent variables of shareholder value added (SAV) and economic value added (EVA) were used as criteria for company performance. Financial solvency level was the independent variable and control variables effective on company performance including financial leverage and company size are also used.Research findings show that the relationship between financial solvency level, EVA and SAV in companies listed in Tehran Stock Exchange is a significant relationship and this relationship is statistically significant.

Keywords:

Financial Solvency Level , Shareholder Value Added (SVA) , Economic Value Added (EVA)and Stock Companies