Ali Pouladi - Department of Accounting, College of Human Sciences, Kangan Branch, Islamic Azad University, Kangan, Iran
majid Vaeezzadeh - Department of Accounting, College of Human Sciences, Kangan Branch, Islamic Azad University,Kangan, Iran
Abutaleb Bardestani - Department of Accounting, College of Human Sciences, Kangan Branch, Islamic Azad University,Kangan, Iran

As an unpredictable index in macro-economy, inflation can be a factor which contributes toeconomic and financial decision-making and affects the return on investment. For that reason,firm managers, shareholders, and future investors are particularly concerned with inflation andits expected rate. Yet the most important economic damage caused by inflation is the uncertaintyof inflation i.e. uncertainty about its rate in future periods. In an uncertain climate, investorsmake decisions which contradict their expectations. That is, alongside the increased inflationuncertainty, the estimations of costs and future benefits of economic activities becomeunpredictable; this can have undesired impacts on resource allocation, efficiency of economicactivities, and investment and negatively affect the production. On that basis, the presentresearch analyzes the impact of inflation uncertainty on capital structure in firms listed in Tehranstock exchange except for investment and holding firms in the period 2006-2012. The results ofthe study of 31 selected firms indicate that there is a significant relationship between inflationuncertainty and the capital structure.

inflation, inflation uncertainty, capital structure