TAILIEUCHUNG - Cash flows and leverage adjustments

This paper presents an empirical investigation to study the relationship between combined leverage and cash flow in terms of board of director’s ownership and corporate governance structures. | Cash flows and leverage adjustments Accounting 2 2016 161 166 Contents lists available at GrowingScience Accounting homepage ac Cash flows and leverage adjustments Farnoush Amini Sharifia and Seyedeh Mahbubeh Jafarib a Masters Student Department of Management and Accounting South Tehran Branch Islamic Azad University Tehran Iran b Faculty member Department of Management and Accounting South Tehran Branch Islamic Azad University Tehran Iran CHRONICLE ABSTRACT Article history Cash flow and leverage are two main components of any business firms. A good level of cash Received December 5 2015 flow and leverage shows a desirable performance for business organizations. This paper Received in revised format presents an empirical investigation to study the relationship between combined leverage and February 16 2016 cash flow in terms of board of director s ownership and corporate governance structures. The Accepted March 18 2016 Available online study selects 86 randomly selected firms listed on Tehran Stock Exchange over the period April 8 2016 2009-2013. Using some statistical tests the survey has indicated that there was a meaningful Keywords relationship between leverage and cash flow for firms with different corporate governance Cash flow structures. The study has also determined that there was a meaningful relationship between Leverage leverage and cash flow for firms with different board of director s ownerships. Tehran Stock Exchange 2016 Growing Science Ltd. All rights reserved. 1. Introduction When firms intend to the implementation of debt finance they may reallocate some expected future cash flows away from equity claimants in exchange for existing cash Bruns amp Merchant 1990 Myers 2001 . The elements that drive this decision remain elusive in spite of a lot of existing studies Frank amp Goyal 2009 . This comes from the fact that many of the empirical investigations are focused at providing support for a special theory Christie

• Kế toán - Kiểm toán
• Tehran Stock Exchange
• Cash flows and leverage adjustments
• Board of director’s ownership
• Corporate governance structures
• Market to book ratio
• n Iran Tehran stock exchange
• chứng khoán Iran Tehran stock exchange
• giao dịch chứng khoán
• đầu tư chứng khoán
• sở giao dịch chứng khoán
• Banks listed in Tehran Stock Exchange
• Risk management on earnings volatility
• Dichev and Tang
• Journal of Accounting and Economics
• Free cash flow
• Low growth opportunity
• Political views and expenses
• Users of the financial statements
• Iranian target company
• Return on equity
• Return on asset
• Financial and strategic
• Financial distress and investment efficiency
• Positive net present value
• Negative net present value
• Lack of selecting investment opportunities
• Price to earnings
• Price to book value
• Market sensitivity to index
• Book to market equity ratio
• Long run corporate tax avoidance
• Avoidance of paying taxes
• Economic value added
• Return on assets
• Market value added
• Stock market development
• Business cycle and risk
• Market development Banks
• Financial market development
• The hierarchical theory
• Enterprise life cycle model
• Net liabilities and retained earnings
• Long term asset