Investigating the Relationship between Characteristics of Chief Executive Officer and Company Ownership with Investment Cash Flow Sensitivity

The main purpose of the study is to investigate the relationship between characteristics of chief executive officer and company ownership with investment cash flow sensitivity. In order to assess the exact impact of each factor on the dependent variables, each of these components were tested in the...

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Bibliographic Details
Published inPacific Business Review International Vol. 9; no. 3
Main Authors Leila Shadman Panabandani, Mohamad Aghaei Bejarkenari, Meshki, Mehdi
Format Journal Article
LanguageEnglish
Published Udaipur Pacific Academy of Higher Education and Research 01.09.2016
Subjects
Cash flow
Hypotheses
Investments
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Summary:The main purpose of the study is to investigate the relationship between characteristics of chief executive officer and company ownership with investment cash flow sensitivity. In order to assess the exact impact of each factor on the dependent variables, each of these components were tested in the two main hypotheses. The purpose of the study is applied and its method is descriptive-correlation.In order to test the hypotheses, 74 companies of Tehran Stock Exchange from2010 to 2014 were selected from 370 companies. The results of the study showed a significant negative relationship between the characteristics of chief executive officer and company ownership with investment cash flow sensitivity. According to the tests, there is a significant negative relationship between characteristics of chief executive officer and company ownership with investment cash flow sensitivity; that is, more optimistic chief executive officer and focus on stock can result in the reduction of investment cash flow sensitivity. Keywords: Management optimism, investment cash flow sensitivity, company ownership Lucknow.
ISSN:0974-438X