The Investigation Impact of Firm's Characteristics on Operating Cash Flow Manipulation

Some incentives and firm characteristics can induce the managers that manipulate operating cash flow and this can causes that they involve in activities that can lead to incorrect allocations and threat shareholders wealth in long-term. This research provides evidence in relation with operation cash flow management and the role of firm characteristics on operating cash flow management. These characteristics include financial distress، debt cost and higher associations between stock returns and operating cash flow. Then، for hypothesizes test، by collection of financial data in 1387 to 1391 years about 80 listed companies in Tehran securities and exchange، we used of regression analysis. Results of research show that، in studied firms in Tehran stock exchange، when the firm is distressing، managers have incentives to manipulate cash flow for showing a good position. But، debt cost and higher associations between stock returns and operating cash flow are not effective incentives for managing the cash flow.