The present study mainly aims at evaluating effects of financial leverage on future stock value (emphasizing industry type).
This is an applied and correlation study considering objective and method, respectively. The research statistical population
was consisted of those Tehran stock exchange listed active cement industry companies analyzed from 2005 to 2008. Research
findings relying on correlation and regression analysis indicates inefficiency of financial leverage on future value of Tehran
stock exchange listed companies. In other words, the criterion is not helpful in predicting future value and lacks significant
explanatory power. Based on research results, considering financial leverage criterion, therefore, will not be useful in
predicting future value.
