The Relationship Between Cash Flow Forecasting and Cost of Owners’ Equity

Cash flow forecasting is an important factor in many economic decisions because cash flows play an important role in almost all decision making by groups such as securities analysts, creditors and managers (Sloan, 1996). To discover this fact, the relationship between the cash flow forecasting and the cost of owners’ equity was investigated. In this study, using the data analysis, the relationship between cash flow forecasting and cost of owners’ equity was examined. The statistical sample of research consisted of 167 companies listed in Tehran Stock Exchange during the 6 years and a multivariate regression method were used to test the hypotheses for gathering information. Test of the hypothesis and finally analysis of the data were done using Excel software as well as statistical software Spss23, Eviews9, Minitab19.The following models have been used to test the hypothesis according to Sang Hwan Yaongs paper (2015). According to the number of variables studied, multiple regression was used. The results of the research show that there is no significant relationship between cash flow forecasts and the cost of owners’ equity.