The Relationship between Operating Cash Flows and Life Cycle Characteristics of Companies Participating in the Tehran Stock Exchange

Subject Areas :

Fatemeh Saraf ¹ (استادیار، دانشکده اقتصاد و حسابداری، دانشگاه آزاد اسلامی واحد - تهران جنوب،)
Samineh Haghparast ² (کارشناسی ارشد حسابداری، دانشکده اقتصاد و حسابداری، دانشگاه آزاد اسلامی واحد - تهران جنوب،)

Received: 2016-01-09 Accepted : 2016-03-18 Published : 2016-04-20

Keywords: Size, age, Operating Cash Flows, Life Cycle Characteristics, Cost of Capital, Sales Growth,

Abstract :

The aim of this study is to investigate the relationship between operating cash flows and life cycle characteristics of companies participating in the Tehran Stock Exchange. During the study period 1389 to 1393, 495 active companies in the years listed were chosen. The results showed that there is a meaningful relation between operating net cash flows and companies’ life cycle characteristics so that the firms that have high capital expenditure and sales growth, will show more operating cash flow since the scope of their understanding of the economic profits is different from their conception of economic losses. Operating cash flows are reduced in accordance with the age and size of the firms. With increasing company size, its stability and sustainability in the competitive markets develops, time variability of cash flows is reduced and its fluctuations will be limited.