Investigating Impact of Combining Components of Cash Flow Statement on Financial Distress of Firms Accepted at Tehran Stock Exchange

According to important role of cash flows statement information, this research tries to predict firms’ financial distress through combining components of cash flows statement based on Iranian accounting standards. Also, we want to detect relationship between cash flows and firms financial distress. This research is empirical in term of goal and is descriptive in term of administration; required information is collected using library regression method. Also, financial distress criterion determined in article 141 of commercial law is used for separating firms. In this research, we predict financial distress through alarm that positive or negative sign of five components of cash flow statement give about future financial situation of firms. In this line, we use binary logistic regression for 30 distress and 30 nondistress firms during 2003 till 2013. Research findings show that some combination of cash flow statement are useful for evaluating firm performance and predicting financial distress.