International Academic Journal of Accounting and Financial Management

  • ISSN 2454-2350

Cash Flow and Stock Market Value (Case Study: Tehran Stock Exchange)

Minoo sharifi and Asghar Asadi

Abstract: In this paper, we study the relationship between cash flows and stock value. In doing so, we investigated financial information of 102 companies listed on Tehran Stock Exchange during 2009-2014 and analyzed the results using SPSS 20, EVIEWS 7 and MINITAB 16. The results indicated a significant inverse relationship between corporate free cash flow and actual stock price. We also found that there was a significant inverse relationship between free cash flow of stockholder and actual stock price and a significant direct relationship between capital cash flow and actual stock price. Finally, we concluded that cash flow and actual stock price were directly correlated.

Keywords: Corporate free cash flow, actual stock price, free cash flow of stockholder, capital cash flow, operating cash flow, panel data

Page: 18-31

Volume 1, Issue 2, 2014