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:: Volume 34, Issue 117 (quarterly journal of economic research and policies 2026) ::
qjerp 2026, 34(117): 304-334 Back to browse issues page
Cash Flow, Firm-Level Political Risk, and Financial Constraints (Case Study: Iran Capital Market)
Seyed Fakhreddin Fakhrehosseini , Meysam Kaviani * , Zoleikha Morsali arzanagh , Parnaz Abedinpour Maboud
Department of Market and Business, Ka.C, Islamic Azad University , m_kaviani@iau.ac.ir
Abstract:   (388 Views)
This study aims to analyze the impact of firm-level political risk and the moderating role of financial constraints on cash flow sensitivity. The research is applied in nature and employs a descriptive-correlational methodology. The statistical population includes 126 companies listed on the Tehran Stock Exchange during the period 2014 to 2023, selected through a systematic elimination method. Multivariate regression models were used for data analysis. The findings indicate that operating cash flow has a significant negative relationship with the cash ratio; however, under conditions of heightened political risk, this relationship weakens, and companies tend to hold higher levels of cash even when experiencing strong cash flows. Furthermore, the results show that financial constraints have a significant moderating effect on the relationship between cash flow and political risk, increasing the sensitivity of cash flow to environmental changes. These findings provide important insights for optimizing corporate liquidity policies and financial management in the face of political instability.
Keywords: Cash flow, political risk, financial constraints
Full-Text [PDF 837 kb]   (145 Downloads)    
Type of Study: Research | Subject: Special
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Fakhrehosseini S F, Kaviani M, morsali arzanagh Z, Abedinpour Maboud P. Cash Flow, Firm-Level Political Risk, and Financial Constraints (Case Study: Iran Capital Market). qjerp 2026; 34 (117) :304-334
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Volume 34, Issue 117 (quarterly journal of economic research and policies 2026) Back to browse issues page
فصلنامه پژوهشها و سیاستهای اقتصادی Journal of Economic Research and Policies
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