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

Authors

  • Mahdi Salehi Ferdowsi University of Mashhad, Faculty of Economics and Business Administration
  • Ali Mohammadi Islamic Azad University, Zanjan Branch, Department of Accounting
  • Parisa Taherzadeh Esfahafi Islamic Azad University, Zanjan Sciences & Research Branch, Department of Accounting

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.

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Published

2013-06-01

Issue

Vol. 46 No. 3 (2013)

Section

Research Papers