The valuation of capital assets using the Fama and French three-factor model toinvestigate the effects of capital structure in listed companies in Tehran Stock Exchange

One of the most important financial decisions is making decisions about the choice of policy financing. This choice and decision was to have a decisive impact for companies. The financing structure of a company is a combination of debt, borrowing and stock, which will lead to the formation of a lever. Leverage ratios, in addition to increase the company risk, also increases the expected return on equity and cost of capital. Fama and French three-factor model is an improved model of capital asset pricing model (CAPM). Fama and French model, unlike the CAPM is based on experience and followers of this theory are that, if the stock is reasonably priced, their risk-taking is multi-faceted. This model, company size and the ratio of the book value of a share to the market value stated as factors explain the changes in stock returns in the stock. The aim of this study was to evaluate the effect of capital structure on stock returns as a risk premium. Therefore, the operating leverage ratio added to Fama and French model

کلیدواژه ها:

Leverage Ratio ، Capital Structure ، Return ، Fama and French three-factor model