Any Relations between Management of Cash Flows & Costs of Benefiting from Debits by Separation of Type of Industry among Accepted Companies at Tehran Stock Exchange Organization

Abstract

The present research intends to provide different information about cash flows management, any effective factors and also the effect of capital structure type on it. It is really important to consider cash situation of company and especially the correctness and true information of operational cash flows. This is because any persons who may benefit from mentioned information would be enabled to apply mentioned information for estimation of time, quantity and ensuring or non-ensuring about future cash flows. Management of cash flows means any consciously functions for changing any reports and/or time table of cash flows which may lead to financial reports and for tricking the users. (Amy L, Geile, 2007) In this research, we have considered any relations between management of cash flows and any costs for supplying of foreign financial resources (debit costs) within a period of time [2003][2004][2005][2006][2007] in accepted companies in Tehran Stock Exchange Organization. Also there is a difference between financial costs of both companies groups with managed or non-managed cash flows. The type of the capital structure is effective in management of cash flows. It is in a way that management of cash flows is more obvious in those companies with financial resources mainly out of debits amounts. Different parts of cash flow includes changing of accounts receivable, stock of goods, short-term investment and circulating capital or debit costs.

تأثیر الهیکل المالی وجودة التدقیق على سلوک إدارة التدفق النقدی التشغیلی وأثره على القدرة التنبؤیة Ocf: دلیل من مصر (باللغة الإنجلیزیة)

“…After Roychawdhury, many studies (e.g. Geilie 2007 ;Call 2007;Zhang 2008;Lee 2012;Paryabi and Fazlzadeh 2012;Manesh et al 2013;Nagar and Sen 2013;Gue et al 2013;Khurana et al, 2014) have followed his model to measure abnormal OCF as a measure of OCF management and have applied different applications in the area of OCF management.…”

“…Another stream of research related to OCF management focuses on the effect of OCF management (Geile 2007;Zhang 2008;Paryabi and Fazlzadeh 2012;Khurana et al, 2014). However, up to my knowledge, no study examined the effect of OCF management on the predictive power of OCF.…”

“…Call, 2007;Zhang, 2008;Lee, 2012, Manesh et al 2013Nagar and Sen, 2013;Guo et al 2013;Frankel and Frankel et al,, 2014). From the other hand, some studies have focused on the effect of OCF management (e.g.Geilie 2007; Khurana et al, 2014;Paryabi and Fazlzadeh, 2012).…”

“…Regarding the effects of OCF, prior studies have focused on: the effect on cost of debts (Geile 2007;Paryabi and Fazlzadeh 2012), bond rating quality (Khurana et al, 2014) and future operating performance of the firm (Zhang 2008). However, the researcher didn't find a study that investigated the effect of OCF management on the predictive ability ofOCF, which is considered one of the main objectives of accounting information.…”

“…This argument is supported by the results of Guo et al (2013) which concluded that companies that depend on banking finance try artificially to enhance its OCF in order to provide a positive signal of its solvency and then decrease the cost of debts. In addition, Paryabi and Fazlzadeh(2012) found a negative relation between OCF components and the cost of debt which may encourage companies to manipulate and overstate OCF in order to decrease cost of debts.…”