The Effect of Cash Flow Shocks on Capital and Asset Structure (Evidence from Tehran Stock Exchange)
ROYA Darabi, M.Adeli, M.Torkamani

Abstract
The aim of this paper examines the effect of financial constraints on cash flow in Tehran stock exchange from 2005 to 2010. Sensitivity of cash flow is defined as “the ratio of changes in cash reserves to the changes in operating cash flows”. This study is an applied, regression-descriptive research. Using three distinctive criteria of company size, payout ratio, and the ranking of the company, companies are classified divided, categorized into two categories of companies with financial constraints and companies without financial constraints in order to test the two hypotheses of study. Based on obtained evidence, the hypotheses were rejected. The research results showed that financial constraints do not affect sensitivity of cash flow.

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