Sensitivity of external resources and cash flow with an emphasis on financial constraints and tangibility in firms listed in Tehran Stock Exchange (TSE)

Document Type : Original Article

Authors
Saeid Jabbarzadeh Kangarlouei
Morteza Motavassel
Yaghoob Bahnamoon
Abstract
This research investigates the relationship between sensitivity of external resources and cash flow with an emphasis on financial constraints and tangibility Tehran Stock Exchange (TSE). The population of the study consists all firms listed in TSE. Sample of research include 71 firms which is studied during the period of 2005 to 2013. The results indicate that not only there is not a significant relationship between sensitivity of external resources and cash flow, but also financial constraints and tangibility is not effective in this relationship. In addition, the results indicate that there is a negative and significant between assets tangibility and external resources which in that with increase of tangible assets, external financing reduces and vice versa. Finally, the results show that there is a positive significant relationship between firm’s growth and assets tangibility with external financing.
Keywords
Sensitivity of external resources
Cash Flow
Financial Constraints
tangibility firms listed in TSE