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Studying the relationship between free cash flows and performance prediction in the corporations of accepted in tehran stock exchange

QUID: Investigación, Ciencia y Tecnología, 2017 (1), p.2274-2282

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  • Title:
    Studying the relationship between free cash flows and performance prediction in the corporations of accepted in tehran stock exchange
  • Author: Fathi, Zadollah ; Manian, Farzad
  • Subjects: Administración ; Companies of accepted in Tehran Stock Exchange ; Financial Leverage ; free cash flows ; performance prediction
  • Is Part Of: QUID: Investigación, Ciencia y Tecnología, 2017 (1), p.2274-2282
  • Description: Free cash flows is a benchmark for measuring the performance of companies and shows the cash available to the company after it has incurred expenses for maintaining or developing assets. Firms with positive free cash flows have high performance, so management tends to cut down profits slowly due to political costs. Because the high performance of the company attracts the attention of the public institutions (the tax office), they are trying to reduce or conceal their high performance using profit management. But companies with negative cash flows are incapable of supporting the growth of profit and income. An inadequate free cash flow could force the company to increase its debt level. Therefore, the management tends to perform better with increasing profit management. The main purpose of this study is to study the relationship between free cash flows and performance prediction in companies listed in Tehran Stock Exchange. For this purpose, the financial information of 102 companies listed in Tehran stock exchange were used during 2011-2015. The results of the research show that there is a significant relationship between free cash flow, return on assets and return on equity and future value of the company.
  • Language: English
  • Identifier: ISSN: 1692-343X
    ISSN: 2462-9006
  • Source: Dialnet

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