M.A. Thesis:

free cash flow, investment efficiency and corporate performance

The free cash flow hypothesis states that when cash flow is available free of charge, these personal interests may be more likely to result in a loss of benefits. The desire of directors of units with free cash flow and low growth opportunities can increase investment in extra projects or even projects with a negative net present value through the creation of an investment that does not maximize shareholder wealth, increase the representation and conflict of interest issues, and increase the performance of companies Severely cut down (Dasho et al., 2008). Reducing company performance will eventually lead to corporate devaluation. Despite the above hypothesis, the results of this study indicate that free cash flow leads to increase of investment efficiency of companies accepted in Tehran Stock Exchange. On the other hand, cash flow of cash with more investment has a positive and significant relationship. In contrast, the results of the first hypothesis of the research are contrary to The hypothesis of free cash flow and the results of the second hypothesis agree with the theory of free cash flow. The results of the fourth hypothesis indicate a positive relationship between free cash flow and firm performance. Therefore, there is not enough consensus on the support or lack of support for this theory in Iran, given the results of the research. The fifth hypothesis of the research also shows that there is a significant relationship between investment efficiency and company performance. The sixth hypothesis of the research also shows that more investment in Iranian companies will increase the reputation of the company by improving it, and ultimately, in the face of expectations, if companies have low investment, they will likely result in lower performance

Keywords: Investment efficiency, low investment, more investment, free cash flow, corporate performance