The investigation Effect of Financial Leverage and Environment Risk on Performance firms of Listed Companies in Tehran Stock Exchange

The aim of this research is to study the investigation Effect of Financial Leverage and Environment Risk on Performance firms of Listed Companies in Tehran Stock Exchange. The variables is in the paper Performance firms (free cash flow per share and return of equity) dependent variable, and financial leverage and environment risk (market risk and economic risk) independent variables. this research is applied and the statistic population is firm listed in Tehran Stock Exchange. By using the omission sampling method, 95 firms listed in Tehran Stock Exchange, has been selected during the years 2005to 2011. The panel data and multiple regression has been used to test research hypothesis. The findings of this study show model1 that there is a negative relation between financial leverage and free cash flow per share and between variables market risk and economic risk with free cash flow per share positive significant and conversely model2 show that there is a between variables financial leverage, market risk and economic risk with return of equity relation positive significant. In todays world, successful business organizations will compete in track was able to review a strategic plan and determine exactly the other hand, have identified goals and individual employees as well as this that encourage your goals on track organization to regulate growth. Strategic management researchers have been proponents of the theory that provide support to the relationship between the environment, structure, and performance. Several management researchers of the likes of Dill (1958), Chandler (1962), Lawrence & Lorsch (1967), Jurkovich (1974), Miles & Snow (1978), Porter (1980, 1985), Bourgeois (1980, 1981), Hambrick (1981, 1983), Dess & Davis (1984), Dess and Beard (1984), Mintzberg (1988), Miller (1986), Hamel & Prahalad (1991), Kotha & Valdamani (1995), and others have directly or indirectly made attempts to theorize the effects of single or multiple constructs, vis-a-vis the firm environment, strategy, and structure on firm performance. These efforts have led to the incremental development of the strategic management literature that stress on the relationships between the constructs mentioned above. The developments in the management literature have had a significant impact on hospitality research, especially in the late eighties and early nineties. These developments were focused around the concept of strategic planning and stressed more on the environmental school of thought, which laid emphasis on the role of the environment in formulating and implementing strategies that have an impact on firm performance. Some of the research work done in the late eighties was aimed at testing the model of Porter (1980, 1985) and Miles and Snow (1978) in terms of the effects of competitive strategy on firm performance. The focus of the studies undertaken by researchers such as Dev (1988), Tse (1988), West (1988), Crawford-Welch (1990), Murthy (1994), and Jogaratnam (1996) was on testing the relationships between two or more of the constructs, vis-a-vis the environment, firm strategy, structure, and performance in the hospitality setting. Other efforts of the likes of Schmelzer (1992) delved into firm structure and tried to explain the components of organizational structure that have an effect on strategy and performance of firms. here is need for researchers to use corporate finance theory to test the coalignment model as the underpinnings of strategy research is based on the fundamentals of economics and finance that emerge from concepts on theory of the firm. Business entities, whether manufacturing or service based, thrive because of the value they add to their existing resources, which lead to stakeholder satisfaction. The process of value addition has been explained by strategy researchers through the use of industrial economics, population ecology, transaction cost economics, as well as the resource-based view, game theory and other domains of strategy theory. Whereas these domains are developed from fundamentals in economic theory, the concepts within these domains have been defined using the theories developed over several years of applied research in management and strategy. To the extent that management researchers have developed these concepts that have contributed to the evolution and growth of the management literature, they have moved away from the concepts in corporate finance to explain theories in strategy and management. Although, management researchers have used among other theories agency cost and resource based view of the firm to explain the concepts that form an integral part of theories in corporate finance, the key underpinnings of corporate finance used to explain strategies of firms have been sparse (Barton & Gordon, 1987).