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Investment-Cash Flow Sensitivity: A Study of Iranian Listed Companies

Author

Listed:
  • Salehi Mahdi

    (Ferdowsi University of Mashhad, Faculty of Economics and Business Administration, Azadi Square, Vakilabad Bolvard, Mashhad City, Khorasan Razavi Province, Iran)

  • Mohammadi Ali

    (Department of Accounting, Zanjan Branch, Islamic Azad University, Zanjan, Iran)

  • Taherzadeh Esfahani Parisa

    (Department of Accounting, Islamic Azad University, Zanjan Sciences & Research Branch, Iran)

Abstract

The main objective of the current study is to examine the effect of audit report on cash-flow investment sensitivity of 123 listed companies in Tehran Stock Exchange (TSE) during 2006-2010. Regression analysis and synthetic data were used for data analysis. The results showed that receiving modified report has a significant negative effect on cash flow-investment sensitivity. The findings also suggest the significant effect of receiving qualified report and unqualified report with explanatory paragraphs on cash flow-investment sensitivity.

Suggested Citation

  • Salehi Mahdi & Mohammadi Ali & Taherzadeh Esfahani Parisa, 2013. "Investment-Cash Flow Sensitivity: A Study of Iranian Listed Companies," Organizacija, Sciendo, vol. 46(3), pages 87-97.
    • Handle: RePEc:vrs:organi:v:46:y:2013:i:3:p:87-97:n:1002
    DOI: 10.2478/orga-2013-0009
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    References listed on IDEAS

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