Mohammad Khodaei Valahzaghard - Assist. Prof. & Faculty Member, Department of Accounting, School of Management and Human Sciences, Tehran North Branch, Islamic Azad University (IAU), Tehran, Iran
Leila Azarshab - M.Sc. Student, Department of Management, School of Management and Human Sciences, TehranNorth Branch, Islamic Azad University (IAU), Tehran, Iran

This study aimed to assess the impact of cash flows on the stock returns. Information on the performance of financial markets is an undeniable role. According to agency theory, should control or monitoring mechanisms sufficient to protect against conflicts of interest caused by shareholders. Transparency and quality of information provided in the financial statements it is considered as a practical way.Regarding the purpose of its application is the type of correlation method. The study population includes all companies listed on the Stock Exchange in Tehran. Scope and research data over the years 2008 to 2013 as the annual financial statements of all companies listed on the stock exchange, banks and other service companies, for example, collected, extracted and examined. The results showed a significant effect on stock returns is the information content of cash flow.

Information Content of Cash Flow, Return on Equity