Investigation of economic uncertainty on cash holding
Subject Areas : Journal of Investment Knowledge
Mehran
Matinfard
1
(Assistant Professor Accounting, Department of Accounting, Faculty of Management and Social Sciences, Islamic Azad University–Tehran North Branch, Tehran, Iran)
Aliakbar
Chaharmahali
2
(Assistant Professor Accounting, Department of Accounting, Faculty of Management and Social Sciences, Islamic Azad University–Tehran North Branch, Tehran, Iran)
Keywords: Economic Uncertainty, Consumer price index, Cash holding,
Abstract :
The purpose of this study is to investigate the effect of economic uncertainty on cash holdings in listed companies in Tehran Stock Exchange. In this regard, the financial information of 135 companies during the period 2010-2010 was systematically extracted and analyzed as statistical sample of research. The purpose of the research is applied and it uses the correlation method. It is also a time-consuming type of post-event research. Statistical analysis was performed using SPSS, R software at 95% confidence level and panel data and linear regression model were used to test the hypotheses. The empirical evidence from the research hypotheses suggests that there is a negative and significant relationship between the variables of stock market index economic uncertainty and consumer price index with cash holding level. The same result was also found among the variables of economic uncertainty effect on cash holding With a year delay . Therefore, both research hypotheses were confirmed.
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