1Master student, Department of Accounting, Semnan Science and Research Branch, Islamic Azad University, Semnan, Iran
2Assistant Prof., Department of Accounting, Islamic Azad University, Semnan Branch, Semnan, Iran
Online published on 15 September, 2015.
The main objective of this study is to investigate the relationship between capital structure and the amount of managers' remuneration and salary and wages paid to employees in companies are accepted at Tehran Stock Exchange. This study was done based on Chamanvar et al. (2013) study and the model proposed by them. This study performed on ninety seven companies accepted in Tehran Stock Exchange which were activated based on the systematic elimination and random sampling during the five-year time period leading up to the end of March 2013. The results obtained of the analysis showed that, in general, there is a meaningful and inverse relationship between financial leverage and managers' remuneration. But there is not a meaningful relationship between financial leverage and salary and wage of the employees. Furthermore the companies that have higher financial leverage, when they expose to financial distressed, on average they pay more salary and wage to their employees.
Capital structure, financial leverage, board of directors' remuneration, salary and wage
