Paper Title
Investigation of the Relationship Between Capital Structure and Cash Flow Statement
Abstract
The present study aims to investigate the relationship between capital structures (financial leverage)
and the components of cash flow statement to find if the financial leverage derived by debt financing affects
cash flow.
The information related to financial statements of food processing companies listed in Tehran Stock Exchange
was applied. Results indicate that the use of financial leverage and its variations slightly affect the cash flow
during the period. Of course, the effect is positive, i.e. with the increase in financial leverage; the cash flow
would go up in the company as well, which is also followed by an increase in the cash flow achieved through
operational and financing activities. However, no relationship was observed between financial leverage and
investing cash flow.
Keywords: Capital structure, Financial leverage, Cash flow statement