Abstract: Debt as a funding source has been considered by many Tehran Stock Exchange companies. Beside the beneficiaries of financial leverage such as tax-shield, excessive financing with loan capitals bring about an increase in risk and financial crisis following the bankruptcy of firms. Since, the use of high leverage increases financial risk, shareholders would demand a higher return to compensate them for the added risk. Researchers in behavioral finance and management argue CEO characteristics such as educational background affect the process of decision-making in firms. In this study, the effect of the company’s capital structure on shareholder returns is analyzed through resource-based view theory and upper echelon theory. In order to review the issue, financial data of 100 firms along with CEOs education informations of these firms are examined during 2008-2013. We employ fixed effects panel data estimation to analyze the effect of CEO education level on shareholder return. The regression analysis is carried out by EViews Software using time series and cross-sectional data. The results of study indicate there is a significant relationship between financial leverage and shareholders return. In addition, the findings show non-significant relationship between CEO education level and shareholders return in Tehran Stock Exchange companies.