The relationship between The optimal cash holdings speed of adjustment and firm value
Subject Areas : Journal of Capital Market Analysis
Mahdi Filsaraei
1
,
Mohammadreza shoorvarzi
2
,
Maryam Azaran
3
1 - Assistant Professor,Department of Accounting,Hakim Toos Higher Education Institute Mashhad,Iran
2 - Associate Professor,Department of Accounting, Islamic Azad University. neyshabour,Iran
3 - Master Graduated of Accounting, Hakim Toos Higher Education Institute,Mashhad,Iran
Keywords: institutional shareholders, Board Independence, Investment Efficiency, Company value, cash holdings speed of adjustment,
Abstract :
This study investigates the relationship between cash adjustment speed and company value in a studied sample of companies on the Tehran Stock Exchange. The present study is applied in terms of purpose, quantitative data in terms of data type, inductive in terms of logic and descriptive-correlation in terms of execution. In this research, various sources including books, internal and external articles and the Internet have been used. Relationships between variables have been tested using correlation and multiple regression models with a dynamic panel approach. First, the collected data were classified in Excel and after organizing the variables, R statistical software was used to analyze the information. In order to test the research hypotheses, a statistical sample of 148 companies listed on the Tehran Stock Exchange was considered by the method of systematic elimination during the years 2012-2020. Based on statistical analysis and estimation of regressions, the results of examining the hypotheses at the expected error level showed that there is a significant relationship between the speed of cash adjustment and the value of the company. Institutional shareholders do not adjust the relationship between the speed of cash adjustment and the value of the company. Board independence does not regulate the relationship between the speed of cash adjustment and the value of the company. Investment efficiency does not moderate the relationship between the speed of cash adjustment and the value of the company. Corporate debt regulates the relationship between the speed of cash adjustment and the value of the company.
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