Adjustment of Capital Structure in Dealing With Financial Helplessness in Companies Admitted to Tehran Stock Exchange

Purpose
Bankruptcy of companies usually brings destructive effects on the capital market and ultimately the economic development of countries. Technological advances and extensive changes in the business world have given increasing momentum to the economy. The competitive conditions of companies have limited success and profitability and companies have faced many crises. In such a way that the survival and continuation of their activity has faced many challenges. Therefore, it can be stated that identifying the effective and underlying factors of financial crises is one of the most important solutions that can be used to get the best results from investment opportunities and waste. . The correct combination of limited resources in optimizing the capital structure is one of the most basic tasks assigned to financial managers in achieving the desired goals of companies. Companies that are at risk of bankruptcy, should change their debt ratio in the capital structure  to a normal state and, to put it better, balance their capital structure. Achieving the desired or optimal structure results in reaching the maximum market value of each share. It is worth mentioning that the emphasis of the capital structure is on the total volume of debts of the profit-making unit, which ultimately reveals the company's ability to fulfill its short-term and long-term obligations. Hence, it seems knowing the factors leading to bankruptcy during the incubation period can largely prevent the emergence of this unbridled phenomenon.
 
Method
Due to the fact that a wide range of stakeholders including financial and credit rating institutions, regulatory institutions and investors and shareholders in the analyzes can use this research, whichis applied research. The statistical population of the present study, according to the criteria defined in the research, was the companies registered in the Tehran Stock Exchange, and by applying the method of systematic elimination, 131 companies have been considered as a screened sample in the period between 2010 and 2019. From logistic regression, which is one of the most accurate methods of measurement in the science of statistics, used to test the research hypothesis and at the end, the merit of the selected verification model, as well as the desirability and prediction accuracy of the model, which is specific to logistic regression, have also been tested.
 
Findings
The results of the research hypothesis test show that, the capital structure adjustment speed variable at a significant level of less than 5% has an inverse relationship with the bankruptcy of companies and the hypothesis of the research is acceptable and accepted at the meaningful level of 95%.
 
Conclusion
The analysis of the results of the hypothesis shows,  the faster the adjustment of the capital structure increases and the sooner the company achieves optimal leverage, the faster it can get out of bankruptcy. Therefore, companies with larger size, greater growth, and less deviation than companies without the mentioned characteristics adjust their capital structure more quickly. In fact, the faster the adjustment of the capital structure increases and the sooner the company reaches the optimal leverage, the faster it can get out of bankruptcy. In other words, by increasing the speed of adjusting the capital structure, the risk of bankruptcy of the company decreases.
 
Knowledge Enhancement
In current study, the theoretical literature expands previous studies on the effect of adjusting the capital structure and bankruptcy of companies. In the field of adjusting the capital structure to prevent the bankruptcy of companies in Iran, it has innovation.
 
Keywords: Capital Structure, Company Bankruptcy, Adjustment of Capital Structure, Bankruptcy Risk.