Master of Accounting and CIMA's student, No. 20, Shahid Shahou Yousefi alley, 17-Shahrivar beltway, Karegar Str., Sanandaj city, Kurdistan state, Islamic republic of Iran
Online published on 4 December, 2014.
The best indicator used to evaluate the efficiency use of the firm's free funds is Level of investment. But this level varies among firms according to the capital structure, liquidity level and how large a firm is. This research study the effect of debt, liquidity and firm size on the relationship between investment and cash flow for the firms listed in TSE from 2004 to 2011. The sample includes 664 firm-years data that for the estimating the coefficients of models used OLS regression based on panel data with fixed effect structure. The results denote that the debt has a negative effect on the investment-cash flow sensitivity and the firm size has a positive effect on this relationship. But the effect of liquidity on relationship between cash flow and investment is not clear.
Investment, cash flow, debt, liquidity, firm size
