Objectives: This research is Examining investment frameworks based on debt concentration. Companies that have a lot of financial constraints have more emphasis on cash flows when making decisions, and the increase in the difference between the cost of domestic and foreign financing increases the sensitivity of investing in domestic cash.
Method: For this purpose, the data related to 120 companies accepted in Tehran Stock Exchange for the period of 2015 to 2020 were extracted and the hypotheses of the research were tested using the regression model of composite data using the fixed effect method.
Results: The results of the first hypothesis of the research indicate the significant impact of financing restrictions on investment sensitivity to cash flows. Also, the second hypothesis of the research indicates that debt maturity has a significant effect on the sensitivity of investment to cash flows. According to the third hypothesis, debt concentration does not have a significant effect on the sensitivity of investment to cash flows, and finally, the fourth hypothesis, the effect of the number of debts on the sensitivity of investment to cash flows, has been confirmed. The results of this research show that by reducing financing restrictions and short-term maturity of debts, problems related to investment will decrease.
Conclusion: Based on the results of the research, it can be stated that the high level of debt concentration reduces the financial constraints and the diverse debt structure can also reduce agency costs.