Corporate governance and the sensitivity of investments to cash flows in Tehran Stock Exchange

Maximize shareholder wealth, moral duties and responsibilities Haay social goals can be considered a very important company. One of the factors that have a significant impact in achieving the goals Mzkvrdard, the implementation of corporate governance principles is appropriate. The aim of this study was to evaluate the sensitivity of investment to cash flows corporate governance in companies listed in the Tehran Stock Exchange. In terms of the purpose of the research, applied research, and the method of trial and after the event. The population in this study, all listed companies in Tehran Stock Exchange is on a four-year period 1394 -1391. Based on the systematic elimination method for selecting a sample of the population of the 86 companies selected as members of the constituent sample in 1394- 1391. Required information through the company's audited financial statements auditing, financial statements 4 years of operation (during the years 1391 to 1394) is collected. To test the stability variables of Levin, Lin Chow (LLC), for diagnosis test model of the Chow test, to test the model specification of Hausman test panel method was used to estimate the model. After collecting and analyzing the data, it was found that the sensitivity of investment to cash flows in companies with poor corporate governance, larger companies with strong corporate governance.