Investigating the Effect of Investment Volatilities Sensitivity to Cash Flow in Listed Firms of Tehran Stock Exchange

Main purpose of this research is to investigate the relationship between cash flow and investment volatility to make a model of investment by research results and help business units' operators to maximize the assets of their shareholders. So, according to the method of systematic deletion, 128 firms were selected from a statistical population in a time period of 2007 to 2011. Then the data were analyzed using a regression model by econometrics method. The results showed that there is a positive and significant connection between cash flow and investment volatility. In other words, growth of cash flow volatility increases the investment.