The Assessment of Brand on the persistence of cash flows and financial policy for companies listed in Tehran Stock Exchange

Document Type : Original Article

Authors
Saied Ali Ahmadi 1
Afsaneh Soroushyar 2
Mohamad Haghighi 3
1 Member of faculty, Department of Accounting, Isfahan (Khorasgan) Branch, Islamic Azad University, Isfahan, Iran (Corresponding Author)
2 Member of faculty, Department of Accounting, Isfahan (Khorasgan) Branch, Islamic Azad University, Isfahan, Iran
3 Master Degree in Accounting, Mobarakeh Branch, Islamic Azad University, Isfahan, Iran
Abstract
The brand as intangible asset can create the customer loyalty. Since the customer loyalty lead to purchase repeatedly, it can increase the stability of cash flow and decrease the need of the external financial. Therefore, the purpose of this research is investigating the relationship between brand and persistence of cash flow, cash holding and financial policy for companies listed in Tehran Stock Exchange (TSE). In terms of purpose, the research is practical and in terms of method is descriptive. The research period is 2001 to 2012. Using the systematic delete method, we select 80 firms for sample. The results indicate that the brand is positively related to cash flow persistence and negatively related to cash holding and leverage. Thus, the results show that strength of brand can increase the cash flow persistence and decrease the need to external financial.
Keywords
Brand
persistence of Cash Flow
Cash Holding and Financial Policy