SUMMARY
Regarding cash flows there is a common theory that represents the transfer of materials into cash resulted from sales of goods and services. This is a reflection of firm's capability to manufacture and it is one of the basic concepts within financial literature. Therefore, the present research is going to investigate about the sensitivity of asymmetrical cash flows on the relationship between constrains in financing and conditioned conservatism in firms enlisted in Tehran Stock Exchange. In this research 138 firms enlisted in Tehran Stock Exchange were investigated during the time period between 2009 and 2014. To test the hypotheses we have used a multiple linear panel regression model. The research findings showed that constrains in financing has had a positive and meaningful effect on conditioned conservatism but the sensitivity of asymmetrical cash flows did not have any meaningful effect on conditioned conservatism. Finally the sensitivity of asymmetrical cash flows has had a positive and meaningful effect on the relationship between constrains in financing and conditioned conservatism.