Univrsity Of Tehran Press Accounting and Auditing Review 2645-8020 22 3 2015 09 23 A review of the relationship between components of internal financial flexibility at Tehran Stock Exchange (TSE) listed companies A review of the relationship between components of internal financial flexibility at Tehran Stock Exchange (TSE) listed companies 319 336 55658 10.22059/acctgrev.2015.55658 FA Parviz Piri Assistant Professor, Faculty of Economics and Management, Urmia University, Urmia, Iran 0000-0003-2819-4444 Samaneh Barzegari Sadaghiani MSc., Faculty of Economics and Management, Urmia University, Urmia, Iran Journal Article 2015 06 14 A better improvement in dealing with unprecedented financial problems and an efficient use regarding incoming investment opportunities would be gained through knowing the relationship between components of internal financial flexibility of firms. Management of internal financial flexibility is directly related to how we use cash, debt capacity, as well as their interaction during encountering crisis and external shocks. The present study, hence, examines the relationship between the components of the internal financial flexibility of 69 firms listed on Tehran Stock Exchange during 2003-2012. Therefore, the extracted data were tested and analyzed using descriptive statistical methods and panel data patterns. The results indicate that the debt capacity is not effective in predicting the retention amount of cash resources; yet, the amount of cash resources retention is considered as one of the factors influencing determination of the debt capacity of firms. A better improvement in dealing with unprecedented financial problems and an efficient use regarding incoming investment opportunities would be gained through knowing the relationship between components of internal financial flexibility of firms. Management of internal financial flexibility is directly related to how we use cash, debt capacity, as well as their interaction during encountering crisis and external shocks. The present study, hence, examines the relationship between the components of the internal financial flexibility of 69 firms listed on Tehran Stock Exchange during 2003-2012. Therefore, the extracted data were tested and analyzed using descriptive statistical methods and panel data patterns. The results indicate that the debt capacity is not effective in predicting the retention amount of cash resources; yet, the amount of cash resources retention is considered as one of the factors influencing determination of the debt capacity of firms. https://acctgrev.ut.ac.ir/article_55658_125a98d63ecb2fab88dfe452f8646874.pdf