标题：STUDYING THE RELATIONSHIP BETWEEN DIVERSIFICATION STRATEGY, CAPITAL STRUCTURE, AND FREE CASH FLOW WITH PERFORMANCE OF THE FIRMS LISTED IN TEHRAN STOCK EXCHANGE
摘要：Financing decisions of firms and their choice for financing by debt or investment was remarkably influenced by the characteristics of their assets. In companies that have taken a variety of strategies, asset structure is nonspecific and can be obtained through debt resources. Because of that, at the time of company’s liquidation, possible liquidity is higher. However, in firms with low diversity (monoculture), assets are specific and should be provided by bringing the resources of stakeholders. Because, at the time of liquidation of the company, possible liquidity is lower.The general and main goal of the study is to research the relationship between diversification strategy, capital structure, and free cash flow with performance of listed companies in Stock exchange of Tehran. The sample consisted of 96 companies listed in the stock exchange whose data was collected and analyzed during 5 years (2008 to 2012). Generally, the findings suggest that the strategy of diversification has a positive impact on firm performance. However, the impact of financial leverage on performance is negative.These findings suggest that firms with high diversity in business have higher profitability, but high debt in the capital structure will reduce profitability. According to the findings, better performance of the firm caused to take a diversification strategy. However, in companies with high debt levels, diversification strategy was more limited. Accordingly, it seems that the commercial and productive activities of companies in the sample company can be a function of their financial structure and capital. These findings suggest that, in firms with better performance, level of financial leverage is lower. These findings show that firms with higher profitability are less willing to be funded through borrowing. Also, according to the research results, free cash flow, in companies with a high level of financial leverage, is lower
