Shahid Beheshti University Financial Management Perspective 2645-4637 11 33 2021 04 21 Market Leverage Effect in Fama Frech Model Market Leverage Effect in Fama Frech Model 9 31 96096 10.52547/jfmp.11.33.9 FA Ezatolah Abbasian Associate Prof., Department of Public Administration, University of Tehran, Tehran, Iran. Reza Tehrani Professor, Department of Financial Management and Insurance, University of Tehran, Tehran, Iran. Mojtaba Pakdin Amiri Ph.D Student in Financial Management, Alborz Campus, University of Tehran, Alborz, Iran. Journal Article 2018 08 04 the model is investigated. Among the companies listed on the Tehran Stock Exchange, the number of statistical samples in the years under review (2016-2017) includes 1408 companies / year. According to the purpose of this research and the performed test, the result of the present research shows; In the three-factor model test, the effect of market factor and size is significant and the effect of value factor is not significant. Also, in the findings of the test of the three-factor adjustment model and considering the market leverage, the results indicate that the effect of market factors, value, size is significant. In both tests, the effect of market factor is significant and direct and the effect of size factor is significant and inverse. Also, the research results show that the value of the adjusted coefficient of determination in the modified three-factor model is more than the initial model and the addition of market leverage will improve the explanatory power of the model. the model is investigated. Among the companies listed on the Tehran Stock Exchange, the number of statistical samples in the years under review (2016-2017) includes 1408 companies / year. According to the purpose of this research and the performed test, the result of the present research shows; In the three-factor model test, the effect of market factor and size is significant and the effect of value factor is not significant. Also, in the findings of the test of the three-factor adjustment model and considering the market leverage, the results indicate that the effect of market factors, value, size is significant. In both tests, the effect of market factor is significant and direct and the effect of size factor is significant and inverse. Also, the research results show that the value of the adjusted coefficient of determination in the modified three-factor model is more than the initial model and the addition of market leverage will improve the explanatory power of the model. https://jfmp.sbu.ac.ir/article_96096_9a8037191dbb195a2ffbc542a11dde67.pdf