University of Isfahan Financial Accounting Research 2322-3405 1 1 2009 12 22 Determining the Optimum Capital Structure at Industrial Level by Using Data Envelopment Analysis (DEA)Case Study: Listed Companies in Tehran Stock Exchange (TSE) Determining the Optimum Capital Structure at Industrial Level by Using Data Envelopment Analysis (DEA)Case Study: Listed Companies in Tehran Stock Exchange (TSE) 33 52 16861 FA M. H. Setayesh Assistant Professor of Accounting, Shiraz University, Iran. A. Ghayouri Moghaddam M.A Student of Accounting, college of Economics, Management and social Sciences, Shiraz University, Iran. Journal Article 2016 06 14 <br />The purpose of this study, utilizing data envelopment analysis, is to determine the optimum capital structure about 11 industries and 314 firms which were accepted in Tehran exchange stock. <br />This research includes two stages: first, in order to indicate the output variables of data envelopment analysis, it has dealt with the relation between financial leverage with financial and non-financial variables at different industries. The variables which have significant correlation with financial leverage have been selected as output variables. The findings signify that financial leverage, in 11 industries with profitability variable, in 6 industries with size variable and in 3 industries with fixed assets ratio has significant relations. Furthermore, except for non-metallic mineral industry, in all studied industries hierarchical theory was confirmed, while trade-off theory was merely confirmed in 5 industries. <br />In the second stage, by using the data envelopment analysis, the optimum capital structure for any of firms was determined at different levels of industries. According to the obtained results, the studied firms can approach their optimum financial leverage and thus provide the increase of firm value and stockholder wealth. <br />The purpose of this study, utilizing data envelopment analysis, is to determine the optimum capital structure about 11 industries and 314 firms which were accepted in Tehran exchange stock. <br />This research includes two stages: first, in order to indicate the output variables of data envelopment analysis, it has dealt with the relation between financial leverage with financial and non-financial variables at different industries. The variables which have significant correlation with financial leverage have been selected as output variables. The findings signify that financial leverage, in 11 industries with profitability variable, in 6 industries with size variable and in 3 industries with fixed assets ratio has significant relations. Furthermore, except for non-metallic mineral industry, in all studied industries hierarchical theory was confirmed, while trade-off theory was merely confirmed in 5 industries. <br />In the second stage, by using the data envelopment analysis, the optimum capital structure for any of firms was determined at different levels of industries. According to the obtained results, the studied firms can approach their optimum financial leverage and thus provide the increase of firm value and stockholder wealth. https://far.ui.ac.ir/article_16861_151e55a3a6e3f87e76d3b03cf945f24a.pdf