Asian Journal of Research in Banking and Finance
  • Year: 2014
  • Volume: 4
  • Issue: 12

Investigating the Impact of Conditional Cash Flow Volatility on Investment: Empirical Evidence from Companies Listed in Tehran Stock Exchange (By Emphasizing on Financial Constraints)

aM.A. of Accounting, Accounting Department, South Tehran Branch, Islamic Azad University, Tehran, Iran

bM.A. of Accounting, Accounting Department, Damghan Branch, Islamic Azad University, Damghan, Iran

*This article is extracted from the Master's thesis of Mr. Abadeh

Abstract

The main aim of this study is to test relationship between conditional cash flow volatility and investment (with special attention to the role of financial constraints) in firms listed on Tehran Stock Exchange. The samples used in this study consisted of 144 firms listed in Tehran Stock Exchange during 1379 to 1391 and to test the hypothesis, we used random effects models and generalized least squares estimation method. The results indicated no significant relationship between conditional cash flow volatility and investment in firms listed on Tehran Stock Exchange.

Keywords

Cash Flow, Cash Flow Volatility, Conditional Cash Flow Volatility, Financial Constraints, Investment, Tehran Stock Exchange