The Comparative Investigation of the Relationship between Internal and External Financial Constraints in Liquidity-Intensive Companies in Tehran Stock Exchange

Establishing balance between the available cash and cash requirements is one of the most important factors of economic health and sustainability of commercial activities. Therefore, the present study examined the sensitivity of external sources to liquidity in in firms with domestic and foreign financial constraints listed in Tehran Stock Exchange. In this study, both traditional and modern criteria have been used for separation of firmsusing financial constraints. In this study, panel data method was used to extract data from 85 companies listed in Tehran Stock Exchange during 1385-1392. The findings suggest that association between operating cash flow and firm size is positive and significant in companies with financial constraints. Also sensitivity of external sources of liquidity to foreign financial sources is higher in the firms with financial constraints compared to the others. The changes in amount of cash have a greater impact on investment in the firmswith financial constraints in contrast to others.