The aim of this study is the effect of financial leverage in the systematic risk of listed companies in Tehran Stock Exchange. In this study, financial leverage (FL) as independent variables and systematic risk (β) as the dependent variable is considered. While significant at ≤ 0/05 H0 hypothesis, is rejected. Otherwise, there is no other adequate reason for rejecting H0 hypothesis. For testing the hypothesis of this study, linear regression technique has been used. According to the results obtained, H0 is rejected because significant = 0.00< 0.05. Thus, financial leverage has effect on the systematic risk of listed companies in Tehran Stock Exchange.
Key words: Financial leverage, capital structure, systematic risk, operating leverage, earnings per share (EPS), earnings before interest and taxes (EBIT).
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