Free cash flow

Open Access Article

1 - The role of Liquid-claims, free cash flow and capital structure in optimizing financial leverage (Case study: Iran's Capital Markets Banking Industry)
Masomeh Azarnia Abd-Almajid Dehghan Ali Nobari Tabrizi

The purpose of this research is to investigate the role of liquid-claim, free cash flow and capital structure in optimizing financial leverage in active banks in the Iranian capital market. The statistical sample of 10 banks accepted in the capital market, whose informa More

The purpose of this research is to investigate the role of liquid-claim, free cash flow and capital structure in optimizing financial leverage in active banks in the Iranian capital market. The statistical sample of 10 banks accepted in the capital market, whose information was available for the period from 2006 to 2016, were selected by systematic elimination method. The research carried out in terms of the target type is a part of applied research and the research method is correlated in terms of content and content. The research has been carried out within the framework of deductive-inductive arguments. For analyzing the hypotheses, a panel analysis has been used. The results show that there is a significant relationship between liquid-claim and financial leverage optimization, between capital structure and optimizing financial leverage, between free cash flow and optimizing financial leverage, and between credit risk of the bank and optimizing financial leverage, but There is no meaningful relationship between type of ownership and financial leverage optimization. Manuscript profile

Open Access Article

2 - The Effects of Product Market Competition on Agency Costs
امید پورحیدری امیر سروستانی رحمت اله هوشمند

In this paper , the effect of Product Market Competition on Agency Cost isinvestigated. In this regard, the effect of size is controlled. For measuring the ProductMarket Competition, the Herfindahl-Hirschman Index of sales and entry barriers is used.For measuring agency More

In this paper , the effect of Product Market Competition on Agency Cost isinvestigated. In this regard, the effect of size is controlled. For measuring the ProductMarket Competition, the Herfindahl-Hirschman Index of sales and entry barriers is used.For measuring agency cost ,two criterion is used. The first criterion is the interaction ofthe firm’s growth prospects and its free cash flows. We used Tobin’s Q as a proxy for thefirm’s growth prospects. The other criterion is the assets turnover ratio.To test thehypotheses and data,multiple linear regression was used. findings of investigating 62firms in the 2003 to 2011 show that as the firm competition power increases and on theother hand the degree of the product market competition decreases, the agency cost wouldsignificantly increase. Moreover, the strength of the research results using annual datawere also exmined. Manuscript profile

Open Access Article

3 - The study of effective factors on probability of default banks' credit facilities (The case study of legal customer of Export Development Bank of Iran)
شمس اله شیرین بخش ندا یوسفی جهانگیر قربان زاد

The aim of this research is to verify effective factors of legal counterparty creditrisk of Export Development Bank of Iran (EDBI), and design a probability of defaultmeasurement model using logit regression.330 probability samples were selected from companies that took More

The aim of this research is to verify effective factors of legal counterparty creditrisk of Export Development Bank of Iran (EDBI), and design a probability of defaultmeasurement model using logit regression.330 probability samples were selected from companies that took loans in year 1387(2008-2009) including 256 good pay bank customers and 65 bad pay bank customers.Seven variables have been recognized which have significant influence atcompanies' credit risk among 13 selected financial ratios as effective explanatoryvariables in default probability based on statistics indexes and economic and financialtheories. after significant examining total of the regression with LR statistic finalmodel in 5% level of significance created by them.The results expressed that cash flow on total debt ratio (CSDT), assets turnoverratio (SATA), current ratio (CACD) and liquidity ratio (LR) have a reverse effect oncredit risk. Free cash flow ratio (RETA), total debt ratio (TDTE) and current debts tonet worth ratio (CDTE) have a direct effect on credit risk. Manuscript profile

Open Access Article

4 - Investigating the value content of different models of free cash flow by considering the growth opportunities and adequacy of the Corporate Governance
javad hosseini Rasoul Baradaran Hasanzadeh ahmad mohammadi mahdi zeinali

10.30495/jfksa.2022.19840

The purpose of this study is to identify a certain criterion of free cash flow that has the most value content under the influence of growth opportunities and corporate governance system. In fact, the purpose of this study is to conduct research that can be effective in More

The purpose of this study is to identify a certain criterion of free cash flow that has the most value content under the influence of growth opportunities and corporate governance system. In fact, the purpose of this study is to conduct research that can be effective in improving the comparability of companies and thus the quality of financial reporting by identifying a specific pattern of free cash flow that has value content. To achieve this goal, 11 widely used free cash flow models were tested on a sample of 180 companies listed on the Tehran Stock Exchange during 2009 to 2019 using panel data regression to examine the value content. The results of testing the research hypotheses showed that free cash flow based on the model of Lehn & Poulsen (1989) with a higher R2 than other models of free cash flow can explain changes in stock market prices under the influence of growth opportunities and corporate governance. . Overall, the findings show that the market gives more weight to the free cash flows of companies that have the opportunity for further growth and a strong corporate governance system. Manuscript profile

Open Access Article

5 - Valuing‌‌ of cash flows in capital cash flow method and comparison it with free cash flow and adjusted present value methods in listed companies of Tehran stock exchange
Mohsen Dastgir Vali Khodadadi Maryam Ghayed

One of the methods for valuing companies is the use of discounted cash flows. In this paper, we introduce capital cash flow discounted by weighted average cost of capital after tax and compare with free cash flow discounted by weighted average cost of capital before tax More

One of the methods for valuing companies is the use of discounted cash flows. In this paper, we introduce capital cash flow discounted by weighted average cost of capital after tax and compare with free cash flow discounted by weighted average cost of capital before tax. The sample data set used consists of 54 companies listed in stock exchange. Then, we collect their financial information during during 1383 to 1385 and for analysis, we apply T student statistic test.                                                                       The results show that by using suitable discounted rate, the calculated valuation by capital cash flow would equal with both of introduced methods.   Manuscript profile

Open Access Article

6 - Provide hybrid model for forecasting financial crises based on free cash flow :evidence from the capital market
ayat tamrinia mahdi Moradzadeh fard REZA Nazari Bahman Banimahd

Abstract: Due to the significant socio-economic and political consequences that financial crises impose on different segments of society, financial crises of reporting units have always been one of the most important issues for creditors, shareholders and stakeholders i More

Abstract: Due to the significant socio-economic and political consequences that financial crises impose on different segments of society, financial crises of reporting units have always been one of the most important issues for creditors, shareholders and stakeholders in general. The purpose of this study is to provide a combined model based on It is based on cash and free flows to predict financial crises in the Iranian capital market. The model is based on selected financial ratios based on free cash flows and by adding efficiency criteria. Research data using samples including 1560 views from 260 companies During the years 2007 to 2017These data are calculated to predict financial crises from Logit regression and to compare the resolution of the hybrid model with other common models of the rock curve. The research findings show that the hybrid model is based on flows. Free cash flow identifies the financial crises of companies in the Iranian capital market properly and has a higher accuracy compared to the following powerful models. According to the results of this study, it can be said that in the Iranian capital market, models based on free cash flows Capturing the structure of Iran's capital market and inflationary conditions has more explanatory power in relation to forecasting financial crises, and company managers and investors and corporate executives and investors in their economic decisions can pay more attention to such hybrid models. Manuscript profile

Open Access Article

7 - Investigating the adjustment effect of corporate governance on the interaction of free cash flows and growth opportunities in synchronizing stock returns
Neda Rezaei asgar pakmaram Rasoul ABDI yaghoub aghdam mazraeh

Concurrent equity return is a relatively new field in financial and economic research that is closely related to economic development, financial market stability, and market efficiency .The overall purpose of this study is to investigate the role of corporate governance More

Concurrent equity return is a relatively new field in financial and economic research that is closely related to economic development, financial market stability, and market efficiency .The overall purpose of this study is to investigate the role of corporate governance adjustment on the interaction of free cash flows and growth opportunities in synchronizing stock returns in companies listed on the Tehran Stock Exchange. The statistical population of this study is the companies listed on the Tehran Stock Exchange from 2006 to 2017. The research method used in this research is applied in terms of purpose and correlation or consistency in terms of method and nature. The test results of the hypotheses show the quality of corporate governance on the interaction between annual stock returns , Interaction between ownership concentration, transaction turnover and stock return synchronization A significant effect But the quality of corporate governance depends on the interaction between the life of the company, the size of the company, the growth of the company, Liquidity and synchronization of stock returns It has no significant effect. Manuscript profile

Open Access Article

8 - Investigation the relation between Free cash flows and Tobin’s Q ratio with Management compensation plans in companies listed in Tehran Stock Exchange
Azita Jahanshad Mahshid Alam Ahrami

Conflicts of interests may arise from managers’ lack of incentive for shareholders’ wealth maximization. For solving this problem and reducing agency costs motivational strategies should be used for managers. One of these strategies is management compensatio More

Conflicts of interests may arise from managers’ lack of incentive for shareholders’ wealth maximization. For solving this problem and reducing agency costs motivational strategies should be used for managers. One of these strategies is management compensation plans and another strategy is ownership of mangement in company.This paper investigate the relation between Free cash flows and Tobin’s Q ratio with Management compensation plans in companies listed in Tehran Stock Exchange.  The purpose of this research is to answer this question that whether management compensation plans and their ownership in company leads to improvement of a company’s performance? Answering these questions helps companies and shareholders to find that whether these plans can increase their value and wealth or not. In this research Free cash flows and Tobin’s Q ratio criteria are used for performance evaluation. For this purpose data of 112 companies listed in Tehran Stock Exchange from 2006 to 2011 was studied. Hypothesis testing analysis was conducted by the use of statistical methods of Pearson’s correlation analysis, regression and variance analysis. The findings show that there is a positive and significant relation between management compensation and both free cash flows and Tobin’s Q ratio. Therefore increase in management compensation leads to improvement of a company’s performance, but percentage of board of directors’share has no significant relation with none of Free cash flow and Tobin’s Q ratio. Manuscript profile

Open Access Article

9 - Investigation of Relationship between Corporate Governance and Cash Flow with Firms’ Investment Efficiency
Samaneh sadat Salavati Abdorreza Asadi

Investment in different activities has been considered by the company as of ways corporate development and avoid recession. The aim of this study is investigate the relationship between free cash flow and corporate governance with their efficiency investments. Therefore More

Investment in different activities has been considered by the company as of ways corporate development and avoid recession. The aim of this study is investigate the relationship between free cash flow and corporate governance with their efficiency investments. Therefore, free cash flow and corporate governance are known as the independent variable that mean of corporate governance is required of members, ownership concentration and the proportion of institutional ownership. The data of 131 companies listed in Tehran Stock Exchange during the period 2010-2014 analysis by using panel data and regression multivariate was in Eviews software. A model was developed in order to test the hypothesis, according to the hypotheses. This model evaluated relationship between the excess cash and corporate governance by investment efficiency. The results of the test model showed that free cash flow did not effect on the investment efficiency but corporate governance has a significant impact on investment efficiency.   Manuscript profile

Open Access Article

10 - The effect of surplus free cash flow, corporate governance and firm size on earnings predictability
Fatemeh Ghorbani M. Hamed Khanmohammadi

The aim of this paper is investigates the impact of surplus free cash flow, corporate governance and firm size on earnings predictability firms in the Tehran Stock Exchange. Free cash flow surplus and earn as independent variables. Also corporate governance mechanisms ( More

The aim of this paper is investigates the impact of surplus free cash flow, corporate governance and firm size on earnings predictability firms in the Tehran Stock Exchange. Free cash flow surplus and earn as independent variables. Also corporate governance mechanisms (independent board of directors, independent chairman, institutional ownership, and managerial ownership) and firm size as moderator variables. The final sample using of 100 firms listed in the Tehran Stock Exchange between2008 to 2014 research done. Linear regression analysis is used for testing the hypotheses. Free cash flow surplus and earn as independent variables. Also corporate governance mechanisms (independent board of directors, independent chairman, institutional ownership, and managerial ownership) and firm size as moderator variables. Result of the test hypotheses indicates that the excess free cash flow and Earnings predictability have effect.and there is also corporate governance mechanisms (independent board of directors, independent chairman, institutional ownership, and managerial ownership) on the relationship between excess free cash flow and Earnings predictability have no effect.     Manuscript profile

Open Access Article

11 - A comprehensive review of inter-relationship among capital structure, free cash flow, diversification and firms’ performance (Tehran Stock Exchange)
MohammadAli Aghaei Sahar Sepasi Morteza Kazempour

The present study is a comprehensive review of the relationship between capital structure, free cash flow, diversification and firms performance. A total of 107 companies who were listed on theTehran stock exchange from 2008 to 2013 were studied. Tobin’s Q was use More

The present study is a comprehensive review of the relationship between capital structure, free cash flow, diversification and firms performance. A total of 107 companies who were listed on theTehran stock exchange from 2008 to 2013 were studied. Tobin’s Q was used to measure firm performanc, Debt leverage was used to measure capital structure and diversification was used to measure entropy. The Lehn and Poulsen (1989) model was used to measure free cash flow.The results showed that free cash flow and debt leverage had positive and significant effects on performance and that diversification had a negative and significant effect. Debt leverage had a negative and significant effect on free cash flow and free cash flow and debt leverge had a positive and significant effect on diversification.Tobin's Q index showed a negative and significant effect for diversification. Diversification and Tobin's Q index showed positive and significant effects on debt leverage. Manuscript profile

Open Access Article

12 - Comparing the Behavioral Model of Stock Images with Traditional Models in estimating Stock values of Companies Listed on Tehran Stock Exchange
Gholamreza Askarzadeh Maryam Khaliliaraghi Hashem Nikoomaram F. RahnamayeRoodposhti

Investors' objective of investing in stocks is gaining profit and reasonable return .Using behavioral model of stock image and traditional models (free cash flow of equity, discounted dividends and residual income), this research tries to present a framework for estimat More

Investors' objective of investing in stocks is gaining profit and reasonable return .Using behavioral model of stock image and traditional models (free cash flow of equity, discounted dividends and residual income), this research tries to present a framework for estimating stock values of companies and assess the performance of each of them in stock valuation of companies. In this regard, 95 manufacturing and industrial companies listed on the Tehran Stock Exchange were selected. The study period was from 2009 to 2013.  The models performance was compared based on explanatory power and accuracy using panel data technique and prediction errors respectively. The results of research show that the behavioral model of stock image is higher explanatory power and accuracy compared to traditional models in estimating of stock values. The behavioral model can explain the role of behavioral factors in stock pricing and helpful for stockholders in the active portfolio management.   Manuscript profile

Open Access Article

13 - The effect of corporate governance mechanisms on the relationship between excess free cash flow and earnings forecast
Ebrahim Abbasi

The aim this paper is investigates the impact of  corporate governance mechanisms on the relationship between excess free cash flow and earnings predictability. Earnings forecasts using regression relationship between of one-year-ahead operating cash flow and curre More

The aim this paper is investigates the impact of  corporate governance mechanisms on the relationship between excess free cash flow and earnings predictability. Earnings forecasts using regression relationship between of one-year-ahead operating cash flow and current earningsachieved. Free cash flow surplus and corporate governance mechanisms (the ratio of independent directors, the Board of Directors, the duality of the role of the Director, the percentage of shares owned by institutional investors and management ownership of shares) as independent variables.Using a sample of 102 firms listed in the Tehran Stock Exchange between2010 to 2014   research done. To estimate the model, multiple linear regression model is used in the the cumulative data. The final result of the test hypotheses indicates that the excess free cash flow and Earnings forecasts and there is also corporate governance mechanisms (the ratio of independent directors, the Board of Directors, the duality of the role of Director, the percentage of shares owned by institutional investors and ownership of shares management) on the relationship between excess free cash flow and Earnings forecasts have no effect. Manuscript profile

Open Access Article

14 - Surplus Free Cash Flow and Earnings Management: The Moderating Role of Auditor Size
Ahmad Abdollahi Yasser Rezaei Pitenoei

10.22034/amfa.2019.583498.1167

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Open Access Article

15 - Free Cash Flow, Institutional Ownership and Long-Term Performance
Yasser Rezaei Pitenoei Mohammad Gholamrezapoor

10.22034/amfa.2019.1865670.1207

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Open Access Article

16 - Impact of Institutional Ownership and Board Independence on the Relationship Between Excess Free Cash Flow and Earnings Management
Allahkaram Salehi Sajjad Mohammadi Marzieh Afshari

10.22034/amfa.2017.533104

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Open Access Article

17 - Investigation of the Relationship Between Conservatism and Financial Flexibility in Profitable Firms
Roya Darabi

The purpose of financial statements is to provide useful information about the financial position, financial performance and financial flexibility. In financial reporting, conservatism is considered as one of the main characteristics of reliability of the information. T More

The purpose of financial statements is to provide useful information about the financial position, financial performance and financial flexibility. In financial reporting, conservatism is considered as one of the main characteristics of reliability of the information. Thus, we examine the impact of conservatism on financial flexibility of 126 profitable firms listed in the Tehran Stock Exchange during 2010-2016. These companies were selected through screening method. The research method of the present study is applied one in terms of the purpose and future- oriented   in terms of collecting data. Research type is descriptive-correlation. In this research, regression analysis and panel data were used to test the hypotheses. The findings of this study indicate that there is a positive relationship between the conservatism of profitable companies and financial flexibility, including the sensitivity of cash flows changes to open cash flows and the sensitivity of cash flows, investment, and payment decisions about dividend payment to shareholders. Manuscript profile

Open Access Article

18 - Investigating the Relationship between Corporate Governance and Dividend Quality with the Adjusting Role of Free Cash Flow
gholamreza farsadamanollahi Amirreza Keyghobadi

Different ownership structure and active shareholders’ roles may lead to a change in companies’ behavior. In the present study, corporate governance utilizes the components of institutional and managerial ownership as independent variables, free cash flow as More

Different ownership structure and active shareholders’ roles may lead to a change in companies’ behavior. In the present study, corporate governance utilizes the components of institutional and managerial ownership as independent variables, free cash flow as adjusting variable,  return on assets as control variables, and dividend quality as dependent variable. In this study, the data was analyzed using fixed effect regression and the data of 136 companies listed in Tehran Stock Exchange during the period 2010-2015 was used. The findings of this research indicated that there is a significant and direct relationship between institutional ownership and management ownership and earnings quality. Moreover, the effect of free flow of cash on the relationship between institutional ownership, management ownership and the quality of profit is negative and significant. This result is consistent with the findings of Jensen (2004), Aligholi et al. (2015), and Philsaraei et al. (2012) but is inconsistent to the findings of Mashayekh et al. (2006) and this inconsistency may be attributed to such factors as economic downturn influencing Iranian capital market Manuscript profile

Open Access Article

19 - The Investigation of Relationship between Free Cash Flows and Over-Investment through Considering Adjusted Role of Corporate Governance Mechanisms in Tehran Stock Exchange
meisam rahimi lacktaseraei Hoda Hemmti

The purpose of this research is the survey of relationship between free cash flows and over-investment through considering adjusted role of corporate governance mechanisms in Tehran Stock Exchange. This practical research is executed through descriptive-correlation meth More

The purpose of this research is the survey of relationship between free cash flows and over-investment through considering adjusted role of corporate governance mechanisms in Tehran Stock Exchange. This practical research is executed through descriptive-correlation method. This research was done through systematic knockout sampling in companies admitted to Tehran Stock Exchange between 2009 to 2015 with a sample of 134 items. To conduct this research, regression model was used via statistical softwares of Eviews 6 and SPSS 18. The findings of this research show that free cash flows have negative effect on the over-investment in companies accepted in Tehran Stock Exchange. The effect of the independence of the directors’ board on this relationship has also been confirmed Manuscript profile

Open Access Article

20 - Application of Valuation Model in Iranian Electricity Distribution Companies
Hassan Siahkali Donia Mahabadi

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Open Access Article

21 - Comparative Investigating of Stock Valuation Discount Models with Emphasizing on Type of Industry in Companies Listed in Tehran Stock Exchange
Mehdi Arabsalehi Alireza Kamali Dehkordi

10.30495/fed.2023.705594

Abstract The purpose of this research is to compare the accuracy of models of discounting cash profits, discounting cash flows, residual profits and growth of abnormal profits in explaining the changes in the share prices of companies listed on the Tehran Stock Exchang More

Abstract The purpose of this research is to compare the accuracy of models of discounting cash profits, discounting cash flows, residual profits and growth of abnormal profits in explaining the changes in the share prices of companies listed on the Tehran Stock Exchange during the years 1391 to 1398, considering the effect of the type of industry on the performance of these models. done. To carry out this research, the statistical sample, which included 105 companies, was divided into two groups: strategic industries and non-strategic industries. Then the aforementioned models were compared in relation to strategic industries and non-strategic industries. Also, the performance of each model was compared between strategic and non-strategic industries. The results of running the models and carrying out T-tests and variance analysis show that in strategic industries, the intrinsic values estimated by the models of discounting cash profits and discounting cash flows have the highest correlation with the stock market value. But in non-strategic industries, the intrinsic values estimated by any of the studied models had no significant correlation with the stock market value. On the other hand, the correlation coefficient of the intrinsic values estimated by all four models except the residual profit model with the stock market value was significantly higher in strategic industries than in non-strategic industries. The results show that in the Tehran Stock Exchange, profit cash items as well as cash flows are accepted more than other accounting information as criteria for buying and selling stocks. Also, the results of the research show that the profits and cash flows of companies active in strategic industries are more stable than in non-strategic industries. Manuscript profile

Open Access Article

22 - The Effect of Free Cash Flow on the Efficacy of Investment Using Panel Generalized Moment Regressions (GMM)
پارسا پرتوی فاطمه صراف فاطمه بشارت پور

The major goal of the present research is to investigate about the effect of free cash flow on investment efficiency. The statistical population for the present study involves all firms enlisted in Tehran Stock Exchange. The sample included 134 firms regarding the defin More

The major goal of the present research is to investigate about the effect of free cash flow on investment efficiency. The statistical population for the present study involves all firms enlisted in Tehran Stock Exchange. The sample included 134 firms regarding the definitions for the criteria utilized by the researcher and making benefit of a systematic deletion method. The research method is quasi-experimental using a post incidental approach. The research method is regression correlation-analysis of applied type and to investigate about the effect of the independent variable (free cash flow) on the dependent variable (investment) we have utilized economic measurement models. The hypotheses were studied by using a panel multiple regression method and the method used to estimate the data was a dynamic model using a generalized moment regression (GMM). Results showed that free cash flows have had a positive and meaningful effect on over-investment and under-investment. Manuscript profile

Open Access Article

23 - نقش کیفیت حاکمیت شرکتی دررابطه بین جریان‌های نقدی آزاد ودستکاری فعالیت‌های واقعی
جمال بحری ثالث عسگر پاک مرام سعید یوسفی

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24 - تأثیر جریان‌های نقدی آزاد مازاد، نظام راهبری شرکتی و اندازه شرکت بر پیش بینی پذیری سود
ناصر ایزدی نیا وحید رو ح الهی

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Open Access Article

25 - The Effect of Financing Policies on the Agency Cost
Hosein Jabbari Halimeh Rahmani Mohammadali Vafapor

In this study ,we provided survey the effect of financing policies on the agency cost in the stock exchange market of Tehran. Agency relation is an agreement, according that owner elect the person and give option to him for deicide firm's operating activity. After agenc More

In this study ,we provided survey the effect of financing policies on the agency cost in the stock exchange market of Tehran. Agency relation is an agreement, according that owner elect the person and give option to him for deicide firm's operating activity. After agency agreement, agency cost raised because of conflict interests between both of the agreement parties. Agency cost has inversing effect on the firm. Therefore the firm looks for controlling and reduce the agency cost. In this research, we defined "Q Tobin "Index to measure the agency cost. This study is applied research and its purpose is surveying the relation between financial leverage, cash dividend and debt ratio of firm's on agency cost. The society of this study is consisted of all active firms in Tehran stock exchange in duration,(1384-1388). After systematic sampling, we collecting 186 firms. In order to test the correlation between the variables, Pearson Correlation Coefficient is used. Also the result of Durbin Watson test is 1. 822 and it means that there is not first order serial and on totality can reliance to results. The results show that there is no relation between financial leverage and agency cost. Also the findings show positive relation between cash dividend and agency cost. Finally the result show negative relation between debt ratio and agency cost Manuscript profile

Open Access Article

26 - Investigating the Mediating Role of Dividend Policy on the Relationship Between Corporate Governance and Free Cash Flow
Vahid Bekhradi Nasab

10.30495/afi.2021.1925196.1015

in the theoretical literature based on normal theory, dividend policy as a mediator is the intermediary between corporate governance and free cash flow. This requires empirical testing for users to confirm the mediating role of dividend policy. Accordingly, the purpose More

in the theoretical literature based on normal theory, dividend policy as a mediator is the intermediary between corporate governance and free cash flow. This requires empirical testing for users to confirm the mediating role of dividend policy. Accordingly, the purpose of the present study is to test the Sobel test to examine the mediating role of dividend policy on the relationship between corporate governance and free cash flow. The statistical population of this study includes all companies listed in Tehran Stock Exchange. The timeframe for doing the research is from 2011 to 2018. The sample size is 94 companies based on the systematic elimination method. The research method is based on hybrid data and multivariate least squares regression model using Sobel test. Evidence suggests that the mediating role of dividend policy has a significant effect on the relationship between corporate governance and free cash flow, meaning that because of the importance of dividend policy and corporate governance mechanisms with free cash flow, intermediary role The total dividend policy has a minor effect on free cash flow because not all interpretations are absorbed by corporate governance mechanisms. Manuscript profile

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