Investigation of Relationship between Corporate Governance and Cash Flow with Firm's Investment Efficiency

Investment in different activities has been considered by the company as of ways corporate development and avoid recession. The aim of this study is investigate the relationship between free cash flow and corporate governance with their efficiency investments. Therefore, free cash flow and corporate governance are known as the independent variable that mean of corporate governance is required of members, ownership concentration and the proportion of institutional ownership. The data of 131 companies listed in Tehran Stock Exchange during the period 2010-2014 analysis by using panel data and regression multivariate was in Eviews software. A model was developed in order to test the hypothesis, according to the hypotheses. This model evaluated relationship between the excess cash and corporate governance by investment efficiency. The results of the test model showed that free cash flow did not effect on the investment efficiency but corporate governance has a significant impact on investment efficiency.