Studying the Relation Between Ownership Structure and Firm Cash Holding in Listed Companies on Tehran Stock Exchange

Document Type : Research Paper

Authors

1 . Faculty Member Islamic Azad University of Bam

2 . Accounting Department Payam Noor University

Abstract

Economic agents hold a considerable percentage of their assets in cash. And this matter has occupied the researcher’s minds for a long time. The main subject of this research is to examine the relation between ownership structure with cash holding in Iranian firms listed on Tehran Stock Exchange (TSE). In this research ownership structure is divided to three categories.(Institutional ownership, Ownership concentration and Governmental ownership). Also in this research, ownership structure variables is used to as independent variables and cash holding is used to as dependent variable. The statistical population is the listed companies on Tehran Stock Exchange during 1382 - 1390 for the data analysis, multiple regression model approach was applied. The results indicate that there is not a significant relation between institutional ownership with cash holding. But the results show that there is a significant negative relation between ownership concentration and cash holding. Also the results indicate that there is a significant positive relation between governmental ownership and cash holding. 

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