M.A. Thesis:

FREE CASH FLOW ٫CEO ABILITY AND FIRM PERFORMANCE.

Performance evaluation in the dimensional dimension of the use of resources and facilities is expressed in terms of performance indicators. If, in the simplest form, the attribute is called efficiency, then the performance evaluation system is actually the efficiency It assesses the management decisions regarding the optimal use of resources and facilities. This study examines the relationship between free cash flow, CEO's ability and performance of companies. This research was conducted for a 5-year period between 91 and 95 years in listed companies. In this study, the financial leverage, company size, sales growth and performance of the previous year have also been used as a control variable. The results of the research showed that there is a positive and significant relationship between free cash flow and firm performance, with the increase in free cash flow due to the reduction of liquidity risk in the Iranian society will improve performance. There is also a positive and meaningful relationship between the ability of the CEO and the firm's performance. In companies with a shorter CEO term, they will have short-term strategies and no long-term vision, which can have a negative impact on corporate performance. Positive free cash flow can affect the profitability and consequently the performance of the company, as negative cash flow could have a similar effect, of course this is relative and in different circumstances. Can have different results. Therefore, it is expected that managers in different situations will be able to make decisions that will have the best result for the company, and this means the best performance of the company, of course, should be the representation theory and its cost in this process, attention specially crafted.

Keywords: corporate performance, free cash flow, CEO's ability and sales growth