The investigation the effect of the cultural values on the cash holdings at listed companies in Tehran Stock Exchange

Subject Areas : Journal of Cultural Management

سعید جبارزاده کنگرلویی ¹ , انور بایزیدی ²

1 - مسئول مکاتبات
2 - ندارد

Received: 2014-09-09 Accepted : 2014-09-09 Published : 2011-09-23

Keywords: cultural values, power distance index, uncertainty avoidance index, Individualism, masculinity and cash holdings,

Abstract :

Introduction and research purpose: The aim of this research is to investigate the relationship between the cultural values and the cash holdings at listed companies in TSE. The criteria of the cultural values are Power Distance Index (PDI), Uncertainty Avoidance Index (UAI), Individualism (IDV), and Masculinity (MAS). Research Method: To measuring of the cultural values was used Hofstede ques 􀆟onnaire and also for cash holdings was applied Ozkan & Ozkan (2004) and Opler & et al. (1999) Models. In this study, it was selected 92 samples in TSE during 2002 ‐2009, Ordinary Least Square (OLS) is applied to tes􀆟ng hypotheses of research and Determination Coefficient, Akaike and Schware measures are used for comparing these models on economic so 􀅌ware EViews 6. Findings: The findings indicate that Power Distance Index and Uncertainty Avoidance Index have weak and positive relationship to cash holdings, however, Individualism and Masculinity has weak and negative relationship to it. Among of the cultural values, Individualism index mid to the control variables has had the most effect on the cash holdings. Results: Results show that the more leveraged and substitute cash assets companies hold the less cash, and reverse, the companies that are able to create of the operating cash flow hold the more cash to internal finance.