Today, more than ever, investors and financial analysts in capital markets rely on reliable financial information. The high quality of financial reporting helps investors to better assess the risk and determine the value of the company and identify the factors affecting it and lead to improved investment decisions.
Basically, identifying the factors affecting the value of the company and subsequently determining the real value close to the intrinsic value of companies is of great importance. Therefore, estimating the future value of companies has always been one of the concerns of investors.
In this study, we have studied the cash flows from operating, investing and financing activities, and examined its impact on the value of the company using the data panel model and the characteristics of dependent variables. The results show that companies that raise funds for capital budgeting projects can increase the value of their company, which in turn leads to cash inflows into financing activities and outflows. Cash flows to investment activities are in line with the company's goals.
However, the results show that cash inflows from operating activities can not be considered as a positive indicator different from the relevant studies. Therefore, we conclude that the market is increasingly competitive for Iranian companies because of this; In addition, we have argued that the value of the firm is unlikely to improve if the increase in cash inflows from operating sales activities is due to lower profit margins or reduced purchases (due to lower market share).