Pages: 19-26

Abstract

The present study is aimed at investigating the effect of competition among product market and cash value of the firms listed in Tehran Stock Exchange. The study considered Herfindahl Index as the criterion of competition. The samples were 85 firms studied during a seven-year period from 2009 to 2016. Finally, EXCEL, EViews, multivariate regression, and fixed effects method were used to test the hypotheses. The hypotheses’ testing results using panel data method, showed a negative and significant relationship between competition in the product market and cash value and a negative and significant relationship between free cash flow and competition in the product market and the firm's cash value. Moreover, there was a positive and significant relationship between diversification of product market with product market competition and firm cash value.