Investment sensitivity to cash flow with respect to information disclosure and corporate governance.

Document Type : Original Article

Authors
Javad toofani chahardah 1
Artin Beytari 1
mohammadreza ghorbanian 2
sara yousefzadeh 1
1 Department of Accounting, ShQ.C., Islamic Azad University, Shahr-e-Qods, Iran.
2 Department of Business management, ShQ.C., Islamic Azad University, Shahr-e-Qods, Iran.
10.22034/jik.2025.78386.4715
Abstract
This study examines how corporate governance affects financing constraints, as measured by cash flow sensitivity, in the presence of disclosure and corporate governance on investment. In order to assess the quality of corporate governance, this study will conduct a corporate governance index based on a large-scale survey of 400 managers and certified accountants from listed companies during 1403. This study uses structural equation regressions to analyze the components of corporate investment so that the cash flow variable is associated with corporate governance and disclosure indicators. The results showed that improving the quality of corporate governance and financial information disclosure have a mediating role in the relationship between cash flow and investment. Corporate governance can also have a direct effect on investment sensitivity to cash flow, but this effect is strengthened by the mediation of disclosure. Financial relations and corporate transparency may also act as mediating factors between corporate governance and investment sensitivity to cash flow.
Keywords
Investment sensitivity
cash flows
corporate governance
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