The Relationship between Free Cash Flow, Excess Stock Return Synchronicity and Quality of Disclosure with Regard to the Company's Growth in Companies Listed in Tehran Stock Exchange

Tahereh Sadeghi Hardengi

Abstract


The purpose of this study was to investigate the relationship between free cash flow, return on equity and quality surplus synchronization disclosed with regard to the company's growth in the listed companies on the Stock Exchange in Tehran. The population of this research in the Tehran Stock Exchange listed companies and data sample consists of 105 companies for the period of 7 years is (2008-2013). Multivariate linear regression analysis to test the hypothesis of this study is at 5%. The results show that the company's growth and free cash flow in excess of synchronicity affect stock returns. The results also showed that companies with low growth (large) and the top (bottom) of free cash, concurrency excess stock return is greater (less) are. In addition, the results showed the company's growth and free cash flow affect the quality of disclosure. In other words, companies with low growth (large) and the top (bottom) of free cash flow, the quality of disclosed lower (higher).

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