Katayoon Tafreshi rad - Student of Master‘s Degree at Islamic Azad University (IAU), Arak Science & Research Branch

This article is aimed at studying the relationship of some of the mechanisms of corporate governance and financial leverage with the free cash flow. The studied sample includes 59 companies admitted to Tehran Stock Exchange which comprise the information required for the 4-year period of the research (2005-2008). This study is a correlational research in terms of the method and it is an applied research in terms of purpose-based categorization. The research results indicate that there is a reverse and significant relationship between the financial leverage and free cash flow of the companies admitted to Tehran Stock Exchange. However, there is not any significant relationship between the corporate governance mechanisms and free cash flow .

corporate governance system, financial leverage, free cash flow, institutional investors