An Investigation on the Relationship between Debt ratio and product market competition: Evidence from Iran

ABSTRACT: This study investigates the relationship between debt and product competitiveness in firms listed in Tehran stock exchange. Debt ratio as the dependent variable and the characteristics of a product competitiveness ability as independent variables have been considered. Based on the criteria considered for the selection, 85 firms listed on the Tehran Stock Exchange (statistical population) during the period 2006 to 2010 were selected as samples. For data analysis, linear regression analysis was used. Testing results show a significant relationship between debt and competitiveness ability of product.