Document Type : Original Research


1 Ms Student of Accounting, Islamic Azad University, Nour Branch, Nour, Iran

2 Assistant Prof., Faculty of Management & Economics, Tarbiat Modares University (TMU), Tehran, Iran


The current research attempts to investigate the relationship between the free cash follow and capital structure and value of listed companies in Tehran Stock Exchange. For this reason, 80 companies were investigated during 2009-2013. Lehn. & poulsen and debt leverage models were used to measure the free cash flow and capital structure respectively. The firm value was also calculated by Tobin’s Q. Findings showed that free cash flow and capital structure have significant and positive effects on firm value.


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