Examine the Relationship between Financial Performance and Capital Structure, Free Cash and Operational Risks in Companies in Tehran Stock Exchange

Abstract

An important asset for the company is liquidity and Cash retention depends on management decision and avoidance of risk of information asymmetry. Disclosure of Financial Information, which published clearly through financial statements, an important factor is to reduce the information asymmetry between managers and owners. Given the importance of this issue, the study tries to survey the effect of operational, liquidity and financing policies on the performance of the listed companies in Tehran Stock Exchange. 119 companies were considered among the listed companies in Tehran Stock Exchange in a 4 year period from 2008 to 2012. The results show that there is a significant relationship between capital structure and the performance of companies. There is a significant relationship between free cash flow and the performance of companies. There is a significant relationship variety of activities and products and the performance of companies.