Study the Effect of Operating Cash Flow on the Time Structure of Debts

Abstract

Capital structure is one of the most important topics in any company. Choose an appropriate capital structure is one of the important issues in determining the value of each company and this structure is composition of financing the company. Methodology: In this study, we investigate the effect of operating cash flow on time structure of debts in listed companies in Tehran Stock Exchange within 2006 to 2013. The number of observations in this research are 98 companies. Research data have been collected using informational banks of Stock Exchange and companies and the hypotheses have been tested using OLS method. Results: Given the results of study, there is a significant relationship between operating cash flow and time maturity of debts. Conclusion: Debts and equity are structural components of capital. Type of debt used in the company will be effective on the company's risk ratio. Some of the companies have used the current debts in financing and financial risk of them will be increased naturally and some are more willing to Non-Current debts.