تاثير جريان هاي نقدي آزاد و محدوديت در تامين مالي بر بيش سرمايه گذاري و كم سرمايه گذاري

The impact of Free Cash Flows & Financial constraint on Overinvestment Underinvestment

This paper surveys some aspects of overinvestment and underinvestment hypothesis. On the base of this hypothesis, Free Cash Flows (FCF) at the result of information asymmetry between managers and shareholders, lead to overinvestment. Also, Financial Constraint (FC) cause to underinvestment. This paper investigates relation between FCF and overinvestment & relation between FC and underinvestment in Tehran Stock Exchange (TSE),s corporations. Results suggest that, there is a positive and significant relation between FCF and overinvestment. Nevertheless, this paper shows, the relation between FC and underinvestment, statistically is not significant.