Document Type : Research Paper
Authors
1 Assistant Prof., Faculty of Economics, Management and Administrative Sciences of Semnan, Iran
2 Instructor, Faculty of Economics, Management and Administrative Sciences of Semnan, Iran.
3 I have not
Abstract
The goal of this paper is to examine the association between product market competition and corporate investment decisions on, particularly over investment and low investment .The managers have different incentives to keep cash in firms. Product market competition is another powerful mechanism ensuring that management does not waste resources. When competition exists, shareholders can observe performance in other firms and use this information as a benchmark to evaluate managers. The aim of this research is to investigate impact of product market competition and Interactive relationship between product market competition and free cash flow on over- investment and low- investment in free cash flow. The Herfindahl-Hirschman index used as measures of competitiveness. The sample consisted of 110 companies listed in Tehran Stock Exchange from 10 different industries over the period 2010 to 2015. Research findings indicates that there is no significant positive relationship between Herfindahl-Hirschman with the low_ investment and over_ investment. The interactive effect of product market competition on a negative free cash flow is significant relationship with low investment .
Keywords
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