The effect of corporate governance on the company's information environment and investment sensitivity to cash flow

Cash is an important and vital resource in any for-profit unit, and creating a balance between available cash and cash needs is the most important factor in the health of any business unit. Also, maintaining a high level of cash costs the company an opportunity cost. Accordingly, the sensitivity of cash flow is of great importance in the company. Therefore, based on this argument, in this study, the role of corporate governance over the information environment of the company and the sensitivity of investment to cash flow in a statistical sample consisting of 167 companies from 2013 to 2021 has been studied. The research method is quasiexperimental and post-event research in the field of accounting and is applied in terms of the nature of implementation. Data analysis was performed based on the partial least squares method using pls software. The results of the first hypothesis show that there is a significant relationship between corporate governance and the information environment of the company. Also, the result obtained from the second hypothesis indicates that corporate governance and investment sensitivity affect cash flow.