Impact of Cash Flow on Capital Structure of Firms Listed in Tehran Stock Exchange

Abstract

This research examines the impact of cash flow on capital structure of firm and finance through debit and capital in future. In order to meet this goal, it is applied from multi variable regression statistical method and this research is carried out from 2006 until 2010 at Tehran stock exchange. In the way of carrying out this research the information related to dependent variable, independent variable and control variable through Tadbirpardaz database and Rahavard Novin database and through website and library affiliated to stock exchange organization and the sample was collected among 415 firms. Upon extracting information, the desired folders were designed and calculated by Excel and finally was analyzed by SPSS software. Results reveal that as it was expected there is significant relationship between operational cash flow with external financing, finance through stock, finance through debit for the firm listed at Tehran stock exchange.