The Impact of Monetary Policy Uncertainty on Cash Holding with Emphasis on Limited Liability Companies
Subject Areas :fatemeh sarraf 1 , hamideh badami 2
1 - Member of the practice board of the Accounting Department, Faculty of Economics and Accounting, Islamic Azad University, South Tehran Branch
2 - Third semester PhD student of financial accounting Azad University Damavand branch
Keywords: Tehran Stock Exchange, Cash Holding, Monetary Policy Uncertainty, Financial Restrictions,
Abstract :
In the state of uncertainty, planning, decision-making and policy-making progress in all economic sectors of the financial markets are disrupted. As the possibility of prediction will decrease and it will be difficult for economic operators to realize future visions.The source of uncertainty can be monetary, financial or political policies. According to this, the uncertainty impact of monetary policies on the optimal level of cash retention of listed companies will be investigated. In order to improve the results, the moderating role of financial restrictions is included in the model. Since all the companies do not have the same access to financial resources to provide their liquidity, which will lead the results to a more accurate explanation of reality.The research method is practical. For this purpose, the information of 127 companies in 11 fiscal years from 1389 to 1399 has been examined.The results of the study are the result of uncertainty in monetary policy subject to economic regimes, and based on this, 5 regimes were observed to estimate the cash hold model. The results showed the fact that with increasing the level of uncertainty, the amount of cash hold increased and in the case of financial constraints to the five models, the amount of cash hold also increased.
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