Cash Flows, Earnings Opacity and Stock Price Crash Risk in Tehran Stock Exchange

One of the main presumptions of agency theory is that company managers (employees) and stockholders (employers) have contradictions in benefits and managers do not necessarily make decisions for the benefits of stockholders. Thus the present research has studied the relation Cash Flows, Earnings Opacity and Stock Price Crash Risk . This research has been carried out in the statistical population of the firms accepted in Tehran Stock Exchange during the years between 2008 and 2012 among 148 active companies there as our statistical sample. To test the hypotheses we have used a logistic regression model. The research findings showed that earnings opacity and operating cash flow sensitivity have a positive and meaningful effect on the risk of stock price crash.