Surveying The Relationship Between Financial Performance, Free Cash Flow, Capital Structure As Well As Related or Unrelated Diversification in Tehran Stock Exchange

Year 2015, Volume: 36 Issue: 3, 457 - 470, 13.05.2015

Zahra Nemati , Ali Akbar Nonahal Nahr

Abstract

This study, investigate the relationship between financial performances, free cash flow, capital structure and related and unrelated diversification. Test research hypotheses on 90 companies listed in Tehran Stock Exchange during the period 1386 to 1391 using the panel data show that diversification on firm performance by the index Q Tobin measure is effective and positive relationship between these two variables is significant and there are so related and unrelated diversification has improved performance. Also other research hypothesis was rejected; indicating between free cash flow and capital structure with financial performance, capital structure and free cash flow, free cash flow, capital structure and diversification, there is no significant relationship.

Keywords

financial performance, Free Cash Flow, Capital Structure, related and unrelated diversification

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