An investigate the effect managerial optimism on investment sensitivity to cash flow

Subject Areas : Financial Knowledge of Securities Analysis

Allahkaram Salehi ¹ , Rohallah Mosavei ² , Mohammad Moradi ³

1 - استادیارگروه حسابداری، دانشگاه آزاد اسلامی واحد مسجدسلیمان
2 - کارشناس ارشد حسابداری
3 - گروه حسابداری، دانشگاه آزاد اسلامی واحد مسجدسلیمان

Received: 2016-01-06 Accepted : 2016-04-03 Published : 2017-03-21

Keywords: Investment cash flow sensitivi, managerial optimism, Financial Constraints,

Abstract :

The sensitivity of investment to cash flow is one of the issues that have recently been the focus of financial researchers. This measure through the changes in company capital expenditures to per unit change in cash flow, measurement is made. The aim of this study was to evaluate managerial optimism measure and its impact on the sensitivity of investment to cash flow with regard to the presence or absence of financial constraints on listed firms in the Tehran Stock Exchange. Thus, financial information of 100 listed firms in Tehran stock exchange investigates during 2007 to 2013. The number of data collected for this study was 700 years–company. In order to test hypotheses, multiple regression with the panel data approach, and software’s SPSS21 and Eviews7 has been used. Our results’ study shows a positive and significant relationship between managerial optimism and investment cash flow sensitivity both for the full sample, and also between firms classified to firms with financial constraints and without financial constraints. Also findings indicate that the Investment cash flow sensitivity under managerial optimism stronger for constrained firms than unconstrained firms

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