Investigation the relationship between corporate governance mechanisms and free cash flows (A case Study: Firms accepted in Tehran Stock Exchange)

In the present study we will focus on investigations about the relationship of some aspects of corporate governance as the corporate governance measurement criteria and free cash flow in firms accepted in Tehran Stock Exchange. In this research we will use 3 internal aspects of the organizations (the division of the duties of the managing director from those of the head of the board of directors, the size of the board of directors, and the existence of non-administrative managers (not in charge) in the board structure) and some mechanisms related to external organizational (such as debt policy, dividends policy, institutional investment, and ownership concentration) to estimate the amount of ownership applied in the firms under investigations which adjust more with economical and financial atmosphere dominating our country and are accessible. The present study has been carried out by using the data related to 80 companies and the utilization of backwards multiple regression method to test the research hypotheses during the years between 2007 and 2013. The research findings show that there is a meaningful relationship between the independent variables of debt and dividends policy and the dependent variable of free cash flow and there is not any meaningful relationship between other mechanisms of corporate governance and free cash flow.