The effects of growth opportunities on the relation between Free Cash Flow and Stock Return Synchronicity of firms listed in Tehran Stock Exchange

Document Type : Original Article

Authors

1 Associate Professor of Accounting, Department of Accounting, Firoozkooh Branch, Islamic Azad University, Firoozkooh, Iran

2 Senior Master of Accounting, Department of Accounting, Firoozkooh Branch, Islamic Azad University, Firoozkooh, Iran

Abstract

This paper investigates the effects of growth opportunities on the relation between Free Cash Flow and Stock Return Synchronicity of firms listed in Tehran Stock Exchange. The aim is to test the hypothesis that firms with low growth opportunities and high free cash flow show higher stock returns synchronicity. To test the hypothesis, 54 firms during 2006-2014 were investigated using pooled panel regression analysis. Positive coefficient for interactive variable (FCF time's growth opportunities) confirms our hypothesis and showing a positive relation between free cash flow problem with stock return synchronicity.
 
 

 
 

Keywords

References

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History

  • Receive Date: 22 June 2016
  • Revise Date: 09 December 2016
  • Accept Date: 11 December 2016

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