The effectiveness test of customer concentration on cash holdings adjustment speed in listed companies in Tehran Stock Exchange

Subject Areas : Journal of Investment Knowledge

Mohammad Amin Rastegar ¹

1 - M.A in Financial Management, Islamic Azad University, Ghods Branch, Tehran, Iran

Received: 2021-03-07 Accepted : 2021-04-11 Published : 2024-03-20

Keywords: National Elections, Political Uncertainty, Labor Investment Inefficiency,

Abstract :

According to the managerial entrenchment hypothesis, uncertainty about government policies (such as taxation and labor laws) is expected to increase significantly during the years of national elections in companies with a larger workforce, which ultimately affects inefficiency. Labor investment will be. The purpose of this study is to investigate the effect of political uncertainty on the labor investment inefficiency in firms listed on the Tehran Stock Exchange. In this regard, 140 companies (980 year-company observation) listed on the Tehran Stock Exchange during the period 2012 to 2018 have been reviewed. In order to test the research hypotheses, the multiple linear regression model was used using panel data. The results of this study show that during the years of national elections, the labor investment inefficiency has increased. In other words, there is a significant negative relationship between political uncertainty and labor investment inefficiency. These results indicate the importance and effectiveness of political uncertainty in labor investment.

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