Identify the impact of free cash flows on the relationship between non-financial performance in product market and company's future capital expenditure

One of the most basic factors of survival of a profit unit is market of its products. Also achieving excellence in the field of competition by companies depends on their ability to maintain capital assets. The purpose of This study focuses on analysis conditions prior to capital expenditures and also on study the matter that non-financial performance (NFP) of the state of product and product market (defect-free ratio, market share ratio, product market competition) can impact Check about companies’ financial investments. The study also describes the impact of agency costs (free cash flow) of companies on the relationship between the non-financial performance and the capital expenditures. The statistical sample includes 135 companies in Tehran Stock Exchange during the 2010 to 2014 years which have been selected by screening. The linear regression method and EViews software are used to study the research hypothesizes. The results of study indicate that there is a significantly relationship between the non-financial performance in the product market and the future capital expenditures so that the worse the current defect-free ratio and the lower the product market share ratio, the higher the future capital expenditures; And the higher the current product market competition, the lower the future capital expenditures. Also the results showed that the free cash flow doesn’t impact on the relationship between the non-financial performance in the product market and the future capital expenditures.