The Optimal Pattern of Cash Holding Level in the Development of Iran's Capital Market
Subject Areas : EconomicHossein savabi Jadid 1 , Ebrahim navidi Ababaspour 2 , Heidar mohamadzadeh salteh 3 , Akbar Kanani 4
1 - Accounting PhD student, Accounting Department, Marand Branch, Islamic Azad University, Marand, Iran
2 - Assistant Professor, Department of Accounting, Marand Branch, Islamic Azad University, Marand, Iran
3 - Associate Professor, Department of Accounting, Marand Branch, Islamic Azad University, Marand, Iran
4 - Assistant Professor, Department of Accounting, Marand Branch, Islamic Azad University, Marand, Iran
Keywords: Optimal Pattern of Cash Holding Level, Cash Holding Level, Effective Factors of Cash Holding.,
Abstract :
Cash is the lifeblood of any business. Having enough cash to cover day-to-day operating expenses, pay bills and invest in growth opportunities is essential. However, having too much cash can also be detrimental to a business, as it can be unplanned and produce no returns. Therefore, determining the optimal level of cash holdings for a business is very important. In this regard, the present study was investigated with the aim of identifying and explaining the optimal model of the cash holding level between 2011 and 2022 in Tehran Stock Exchange. For this purpose, using the studies conducted in the past periods (result-based meta-analysis), 83 variables were identified and given to 10 experts, and according to their opinions, they were classified into 63 variables and 12 groups (Delphi analysis). ). Optimization tests, including the best variables with a high coefficient of determination and minimum root sum of squared errors, 6 groups of verified variables, including industry characteristics, quality of accounting information, risk criteria, market criteria, performance characteristics and financial constraints, respectively with coefficients ( -0.0162), (-0.0007), (0.0094), (0.0012), (0.0013), (0.0014) explain the optimal points of a company's maintenance level.
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