Investigating the effect of corporate diversification on cash retention in companies listed on the Tehran Stock Exchange
الموضوعات :
Mahdis Alemzadeh
1
(Master of Accounting, Department of Accounting, Central Tehran Branch, Islamic Azad University, Tehran, Iran)
الکلمات المفتاحية: Corporate diversification, Commercial diversification, Geographical diversification, Cash retention.,
ملخص المقالة :
This study was an attempt to investigate the effect of corporate diversification on cash retention. Diversification is a risk management method that combines different types of investments. Diversification is a model for developing a company by offering diverse products and services. This study is experimental and fundamental in terms of its purpose and correlational in terms of its nature. The study data were extracted from the observed values of eighty-nine stock companies during ten years from 2002 to 2021. The collected information is company-year and the purpose of the study is to test the effect of independent variables on the dependent variable to investigate the effect of corporate diversification on cash retention in companies listed on the Tehran Stock Exchange. According to the collected information and using the combined model of regression analysis, three models were fitted and three hypotheses were tested. The results obtained from the investigated models support the inverse effect of corporate diversification indices including commercial diversification index, commercial diversification dummy variable, and geographical diversification dummy variable on cash retention. A dummy variable is referred to as an indicator of technological changes at a certain point in time. However, the results did not support the effect of the geographic diversification index on cash retention.
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