Document Type : Original Article


1 Student, Department of Accounting, Sirjan science and research Branch, Islamic Azad University, Sirjan, Iran

2 Department of Accounting, Tabriz Branch, Islamic Azad University, Tabriz, Iran

3 Department of Industrial Management, Valiasr University, Rafsanjan, Iran


In the present research we have studied about the effect of asset's liquidation regarding the limitations of financing on cash flow sensitivity of cash. To carry out the research we have chosen 60 firms accepted in Tehran Stock Exchange during the time period between 2006 and 2011 using a systematic deletion method. To test the research hypotheses we have used a multiple variable regression method. Then the results were analyzed using atast software. The research results showed that the liquidation of physical assets does not affect cash flow sensitivity.


Arsenal, Q., Florackis, C., Ozkan, A. (2006).  The role of cash holdings in reducing investment cash flow sensitivity. Emerging markets review, 7(4):320-338.
Alipour, H., Alimoradi, Sh. (2011). Studying financial leverage and assets' liquidation in Tehran Stock Exchange", Quarterly Journal of Financial Researches, 25: 91-108.
Allayannis, G., Mozumdar, A. (2004).  The impact of negative cash flow and influential observations on investment cash flow sensitivity estimates. Journal of banking & finance¸ 28(90), 1-930.
Almeida. H., Camilla, M. (2003).  Financial constraints, asset tangibility, and corporate investment. AfA 2005, Philadelphia meetings.
Baum. C., Schafer, D.,   Talavera, O. (2011).  The impact of financial system structure on firm financial constraints. Journal of international money and finance 30, 678-691.
Foroughi, D., Rasaeeyan, A., Zare, S., Saeedi, A. (2011). The effect of profit quality on the amount of cash holding in Tehran Stock Exchange", Quarterly Science and Research Journal, 2(16), 57-81.
Fazzari, S., Hubbard, G., Petersen, B. (1988).  Financing constraints and corporate investment. Brookings paper on economic activity, 1, 141-195.
Gopalan, R., Kadan, O., Pevzner, M. (2008). Managerial decisions, asset liquidity, and stock liquidity. Available at
George, R., kabir, R., Qian, I. (2008).  Investment cash flow sensitivity and financial constraints: an analysis of indidan business group firms. Ssrn working paper.
Khaliheh-Soltani, A., Bahrami M. (2012). The relationship between capital structure changes and stock liquidation changes", Journal of Experimental Researches in Accounting, First year, No. 4, 35-53.
Karimi, F., Sadeghi, M. (2009). Internal and external financial limitations and their relationship with investing capital assets in firms accepted in Tehran Stock Exchange", Quarterly Science and Research Journal of Financial Accounting, First year, No. 4.
Ozkan, A., Ozkan, N. (2004). Corporate cash holding? An empirical investigating of UK companies. Journal of banking & finance28 (9), 2103-2134.
Riis flor, C.H., Hirth, S. (2013).  Asset liquidity, corporate investment, and endogenous financing costs. Journal of banking & finance37, 474-489.
Rocheteau, G., Wright R. (2013). Liquidity and asset market dynamics. Journal of monetary economics 60, 275-294.
Tehrani, R. (2012). Financial Management", Negah-e-Danesh Publications.