Investigating the Moderating Role of Board Independence on the Relationship between Free Cash Flow and Investment Efficiency of Listed Companies in Tehran Stock Exchange

Corporate governance is described as an effective mechanism for reducing agency problems among shareholders and managers by monitoring and regulating the activities of managers. The purpose of this study is to examine the moderating role of board independence on the relationship between free cash flow and investment efficiency of listed companies in Tehran Stock Exchange. To this end, information from 119companies listed on Tehran Stock Exchange during the period 1389-1396 has been reviewed. The research models were estimated based on the type of estimation method specified by F-Lemer and Hausman tests. And the estimated results were analyzed for each model And ordinary least squares method and multivariate regression were used to process the research model. Also, Eviews version 9 and Excel 2010 software have been used to perform the calculations. The results of the research hypotheses indicate that there is a significant relationship between free cash flow and investment efficiency of listed companies in Tehran Stock Exchange. Board independence also has a significant effect on the relationship between free cash flow and investment efficiency of listed companies in Tehran Stock Exchange.