Investigating the effect of financial flexibility in the use of derivatives on firms value at Tehran Stock Exchange

The firms In order to avoid costly investments need to financial flexibility. In this study, the financial flexibility have been investigated in the two groups of firms. The first group are firms that in the structure their have used of financial derivatives as instruments hedging and the second group are firms that not used of this financial instrument. Statistical population of the study are all the firms listed in Tehran Stock Exchange in the period 8002-8008. The number of samples is determined by the systematic elimination is 76 firms that of this number 08 firms during the research have used of financial derivatives. Results of the study indicate that financial flexibility the positive and significant relationship With firms value and in using of derivatives Was greater the amount of financial flexibility and This firms have more value for investment.

Keywords:

Derivatives , Firms Value , Financial Flexibility , Hedging