The Study of Effect of Off-Balance Sheet Financing on Returns of Owners Equity the Accepted Companies in Tehran Stock Exchange

Document Type : Original Article

Authors
Javad Faramarz 1
Ali Akbar Pourmoosa 2
1 Nonprofit Institution of Nima ,Faculty of Humman science, Department of Accounting, Iran
2 Islamic Azad University Branch of Mahmodabad , Department of accounting, Iran
Abstract
Off-balance sheet financing is a financing tool for companies to achieve the optimum combination of financing During past three decades this way of financing usually used when the companies while to acquisition of asset, those companies don’t want to  represent  in  the balance sheet that asset and the way of financing in which it is usual trough the  debts. This way of financing will improve capital structure and consequently it will changes the risk curve.
Also the off-balance sheet financing leads to higher flexibility in financing. The research will inspect the study of the effect of off-balance sheet financing on the owner s equity of the companies mentioned, the research used in this is comparative-descriptive analysis, and its samples include 45 companies in Tehran Stock Exchange which have been active in machines and car industries, chemical industries, mineral industries and used the activities of The off- balance sheet financing (operating lease) 1387 to 1392.
The results of the research show that not only off-balance sheet financing doesn’t  increase ROE and ROI owners equity, also decrease owners equity  through the decrease  in the ROE , ROI and owner s equity.
Keywords
off-balance sheet financing
Operating lease
Special project financing
Out sourcing