A survey on relationship between capital structure, free cash flow and diversification and firm performance of listed companies in Tehran Stock Exchange
This paper presents an empirical investigation to study the effects of free cash flow, share diversification and capital structure on Tobin-Q in selected firms on Tehran Stock Exchange. The population of the survey includes 520 firms listed on this exchange until year 2012 and the survey uses a samp...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
Growing Science
2014-10-01
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| Series: | Management Science Letters |
| Subjects: | |
| Online Access: | http://www.growingscience.com/msl/msl_2014_290.pdf |
| _version_ | 1818758309902024704 |
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| author | Mohammad Khodaei Valahzaghard Maryam Borzabadi Farahani |
| author_facet | Mohammad Khodaei Valahzaghard Maryam Borzabadi Farahani |
| author_sort | Mohammad Khodaei Valahzaghard |
| collection | DOAJ |
| description | This paper presents an empirical investigation to study the effects of free cash flow, share diversification and capital structure on Tobin-Q in selected firms on Tehran Stock Exchange. The population of the survey includes 520 firms listed on this exchange until year 2012 and the survey uses a sample of 105 firms, randomly. The study uses the models originally developed by Palepu (1985) [Palepu, K. (1985). Diversification strategy, profit performance and the entropy measure. Strategic Management Journal, 6(3), 239-255.] to measure the effects of different factors on Tobin Q. The study has indicated that while capital structure and free cash flow influence positively on Tobin Q, diversification has maintained a negative and meaningful relationship with Tobin Q. |
| first_indexed | 2024-12-18T06:24:47Z |
| format | Article |
| id | doaj.art-15e6a4b348d7484e803d8780b0d8e191 |
| institution | Directory Open Access Journal |
| issn | 1923-2934 1923-9343 |
| language | English |
| last_indexed | 2024-12-18T06:24:47Z |
| publishDate | 2014-10-01 |
| publisher | Growing Science |
| record_format | Article |
| series | Management Science Letters |
| spelling | doaj.art-15e6a4b348d7484e803d8780b0d8e1912022-12-21T21:18:03ZengGrowing ScienceManagement Science Letters1923-29341923-93432014-10-014102191219610.5267/j.msl.2014.9.018A survey on relationship between capital structure, free cash flow and diversification and firm performance of listed companies in Tehran Stock ExchangeMohammad Khodaei ValahzaghardMaryam Borzabadi Farahani This paper presents an empirical investigation to study the effects of free cash flow, share diversification and capital structure on Tobin-Q in selected firms on Tehran Stock Exchange. The population of the survey includes 520 firms listed on this exchange until year 2012 and the survey uses a sample of 105 firms, randomly. The study uses the models originally developed by Palepu (1985) [Palepu, K. (1985). Diversification strategy, profit performance and the entropy measure. Strategic Management Journal, 6(3), 239-255.] to measure the effects of different factors on Tobin Q. The study has indicated that while capital structure and free cash flow influence positively on Tobin Q, diversification has maintained a negative and meaningful relationship with Tobin Q.http://www.growingscience.com/msl/msl_2014_290.pdfCapital structureFree cash flowDiversificationFirm performance |
| spellingShingle | Mohammad Khodaei Valahzaghard Maryam Borzabadi Farahani A survey on relationship between capital structure, free cash flow and diversification and firm performance of listed companies in Tehran Stock Exchange Management Science Letters Capital structure Free cash flow Diversification Firm performance |
| title | A survey on relationship between capital structure, free cash flow and diversification and firm performance of listed companies in Tehran Stock Exchange |
| title_full | A survey on relationship between capital structure, free cash flow and diversification and firm performance of listed companies in Tehran Stock Exchange |
| title_fullStr | A survey on relationship between capital structure, free cash flow and diversification and firm performance of listed companies in Tehran Stock Exchange |
| title_full_unstemmed | A survey on relationship between capital structure, free cash flow and diversification and firm performance of listed companies in Tehran Stock Exchange |
| title_short | A survey on relationship between capital structure, free cash flow and diversification and firm performance of listed companies in Tehran Stock Exchange |
| title_sort | survey on relationship between capital structure free cash flow and diversification and firm performance of listed companies in tehran stock exchange |
| topic | Capital structure Free cash flow Diversification Firm performance |
| url | http://www.growingscience.com/msl/msl_2014_290.pdf |
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