Investigating The Effect of Financing Method on Profitability Growth and Sales Efficiency of Products of Pharmaceutical Idustry Companies Members of Tehran Stock Exchange

Abstract

Introduction: Equipping resources and financing projects is one of the main bottlenecks of the country's economy. Companies to finance the expansion of their activities or to compensate for the existing lack of liquidity provide financing from domestic and foreign sources and provide the funds they need. Objective: The main purpose of this study is to investigate the effect of financing method on profitability growth and sales efficiency of products of pharmaceutical companies that are members of the Tehran Stock Exchange Methods: The research method of the present research is field (survey) and in terms of time is a practical and cross-sectional research, so that data collection has been done using documents. The statistical population of this research is all pharmaceutical companies listed on the Tehran Stock Exchange. Information and statistical data related to the companies included in the statistical sample have been collected in the period of 2013 to 2018. According to the studies, 17 pharmaceutical companies are selected as a statistical sample. In this study, multivariate regression analysis and Spss18 and Eviews software were used to analyze the information and test the hypotheses. Results: According to the studies, the results show that debt financing has an effect on the growth of profitability and sales returns of companies in the pharmaceutical industry, members of the Tehran Stock Exchange. Also, other results of the study indicate that financing through equity has an effect on the growth of profitability and sales of pharmaceutical companies that are members of the Tehran Stock Exchange. Discussion and Conclusion: There is a significant relationship between equity financing and debt financing with the growth of profitability and sales of products of pharmaceutical companies that are members of the Tehran Stock Exchange.