The Investigation of Cash Flow Volatility on Systematic Risk in Accepted Companies in Tehran Stock Exchange

Subject Areas : Futurology

Younes Badavar-Nahandi ¹ (مسئول مکاتبات))
Hossein Bevrani ² (ندارد)
Hamzeh Abravan ³ (ندارد)

Received: 2011-05-27 Accepted : 2011-09-11 Published : 2011-10-23

Keywords: Volatility in cash flows relat, Volatility in cash flows&#x0D, &#x0D, rel, Volatility&#x0D, &#x0D, in cash flows rel, Volatility in cash flows relat, Volatility in cash flows relat, systematic risk,

Abstract :

Evaluation of utility of a platform investment in uncertain status is based on its risk andreturn values. In other words, awareness from risk of companies, especially the systematic riskcan play an important role in decision-making. The main purpose of this research is study ofeffects of volatility in cash flows on systematic risk. In this study the effect of volatility in cashflows related to each of the sections of Cash Flow Statements (accounting standards of Iran) onsystematic risk of listed companies in Tehran Stock Exchange has been studied. The aim ofthis research is Applied Research and research method is causal or post facto method. In thisstudy, financial information of 73 companies listed in Tehran Stock Exchange during the period2004 to 2008 were investigated. In order to test the hypotheses, statistical techniques ofcorrelation and regression analysis and test of significance for the Pearson model, T and F hasbeen used.The results show that volatility in cash flows from operating activities, volatility incash flows related to income tax, volatility in cash flows from investment activities andvolatility in cash flows from financing activities have positive effect on systematic risk, whilevolatility in cash flows related to investments returns and interest and dividend paid forfinancing activities has no impact on systematic risk.