Financial leverage has an important role in investment decisions. Some previous researches has proved a relationship between Financial leverage and some factors such as rate of return on assets, market value to book value ratio (MV/BV), firm's size, liquidity of companies assets and size of board of directors.
The aim of this research is analyzing the relations which are effective on capital structure of company; we used some factors such as rate of return on assets (ROA), firm's size and liquidity of assets to analyze these relations. The results showed the significance of rate of return on assets (ROA), and also its negative effect on financial leverage, results also showed other variables have no effect on financial leverage.
Capital Structure, financial leverage, rate of return on assets (ROA), firm's size, liquidity of assets of property
