Analyzing the Impact of Financial Managers' Perception of Macroeconomic Variables on Capital Structure of Firms Listed in Tehran Stock Exchange

The purpose of this study is to examine the effect of Perceived macroeconomic variables by financial managers on capital structure decisions of firms listed in Tehran Stock Exchange. A detailed questionnaire was employed to collect data about perception of macroeconomic variables, namely GDP, interest rate, inflation rate and exchange rate. A total of 100 questionnaire forms were filled by financial managers of selected firms among ten major industries. Result of regression analysis shows that there is no significant relationship between perceived macroeconomic variables and the way Iranian corporate arrange their capital structure, however, majority of financial managers express the significant effect of exchange rate, inflation rate and interest rate, in order of importance, on capital structure of firms.