M.A. Thesis:

Cash flow and free flow, investment efficiency and profit management

The main purpose of this study is to determine the impact of free cash flow, investment efficiency in fixed assets and earnings management in Tehran Stock Exchange. This study was conducted for a period of 5 years in the years 93 to 97 and for 131 companies and 655 years-companies. The results of the first hypothesis showed that the level of significance is less than 0.05, so there is a significant effect between free cash flow and earnings management in companies listed on the Tehran Stock Exchange. Regarding the second hypothesis, the results indicate that due to the significant level (more than 0.05), there is no significant effect between free cash flow and the efficiency of investment in fixed assets in companies listed on the Tehran Stock Exchange. Also, regarding the third hypothesis, it was shown that by comparing the Fisher statistic with the value of the hypothesis that the coefficients are zero (P-value? 0.05) is rejected and the significance of the whole regression model is not confirmed. Therefore, there is no significant relationship between investment efficiency in fixed assets and earnings management and the research hypothesis is rejected. Regarding the fourth hypothesis, the results showed that considering the significance level related to the free cash flow variable * investment efficiency (less than 0.05) shows the investment efficiency in fixed assets shows the relationship between free cash flow and earnings management. Adjusts. According to the test results, it can be said that the efficiency of investment in fixed assets modulates the relationship between free cash flow and earnings management and the research hypothesis is confirmed.

Keywords: Free cash flow - investment efficiency in fixed assets - Earnings management