The relationship between Operating Cash Flows and the Dynamic Optimal Capital Structure Spee: The Role of Corporate Governance

Document Type : Research Paper

Authors

1 MSc. of accounting department, Non-profit higher education institution, Rasht, Iran.

2 Assisstant prof. Department of accounting, Azad university, Somee sara branch, Somee sara, Iran.

3 Depatment of Statistics, Faculty of Mathematical Sciences, University of Guilan, Rasht, Iran.

Abstract

The corporate governance determines relations among executive managers, stockholders, board of director and others that consider four main goals between executive managers and board of director and against stockholders and other stakeholders included accountability, transparency, justice and neutrality and responsibility. We divide companies in two categories: strong corporate governance companies and weak corporate governance companies to analyze the effect of operating cash flows on leverage structure dynamics. The main objective of present study is to investigate the linear relationship between corporate governance, operating cash flows and dynamic capital structure. The statistical sample includes 94 companies during the period from 2010 to 2017 based on filtering and systematic omission process, and we analyze the relationship between variables by generalized least square and panel data method. The result shows that there is a significantly positive relationship between operating cash flows and dynamic capital structure. Moreover, the results show that there is a significantly positive relationship between operating cash flows and dynamic capital structurein companies with strong corporate governance and dynamic capital structure.
 

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References

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History

  • Receive Date: 20 May 2019
  • Revise Date: 19 September 2020
  • Accept Date: 14 September 2019

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