A study of the size and type of effective financing methods on operating performance: A case study of Lavan Oil Refining Company

Companies require finance resources to perform their activities and the resources would be provided through releasing ordinary and preferred stock to investors and borrowing or get loans from creditors. Some theories have addressed the issue that why firms choose a particular method of financing and what impact such choices would have on the firm performance. Using regression model and correlation analysis, the study has dealt with to examine the relationship between the size and type of financing by four performance measures of, rate of return on investment (ROI), financial efficiency of an organization, rate of return on equity (ROE), and the liquidity of Lavan Oil Refining Company during 1383 to 1392. Results of other similar local studies showed that changes in the volume of financing can affect finance efficiency of the organization and the type of financing can also affect the finance efficiency of the organization and liquidity.

کلیدواژه ها:

financing ، performance ، rate of return on investment ، financial efficiency of organization ، return on equity rate ، liquidity