The Effect of Stock Liquidity on Cash Holding with Emphasis on Growth Opportunity in Tehran Stock Exchange

Subject Areas : Financial accounting

Foroogh Peymannia ¹ , Zohreh Hajiha ²

1 - MSc. in Accounting, Department of Accounting, East Tehran Branch, Islamic Azad University, Thran, Iran.
2 - Prof of Accounting Department, East Tehran branch, Islamic Azad University, Tehran, Iran.

Received: 2024-01-05 Accepted : 2024-12-24 Published : 2025-01-27

Keywords: stock liquidity, cash holding, growth opportunity,

Abstract :

The aim of the research is to investigate the effect of stock liquidity on cash holding with an emphasis on the growth opportunity in firms listed on the Tehran Stock Exchange (comparing companies sensitive to drought crisis with other companies). For this purpose, relevant information was extracted from the financial statements of the firms listed on the stock exchange. The time frame of the research was considered from 1389 to 1399. For statistical analysis, regression estimation with panel data was used. The results of the research hypotheses test show that the liquidity of stocks does not have a significant effect on the cash holding. Also, the growth opportunity has a moderating role on the effect of stock liquidity on cash holding. The results of the research hypotheses test show that the liquidity of stocks does not have a significant effect on the cash holding. Also, the growth opportunity has a moderating role on the effect of stock liquidity on cash holding.

References:

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