Cash Holding, Firm Value and Performance under Financial Constraint: A Case Study of the Iranian Capital Market
Purpose: The present study was conducted to gather evidence to investigate the relationship between cash holdings, firm value, and financial performance of companies' constraints in financing the Iranian capital market.Methodology: This study was investigated for 91 companies (number of observa...
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| Format: | Article |
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Ayandegan Institute of Higher Education, Tonekabon,
2022-02-01
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| Series: | مدیریت نوآوری و راهبردهای عملیاتی |
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| Online Access: | http://www.journal-imos.ir/article_140271_90fae5f179a1b1cbe3d5b9099fc6efda.pdf |
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| author | Azadeh Shemshad Mohsen Imeni |
| author_facet | Azadeh Shemshad Mohsen Imeni |
| author_sort | Azadeh Shemshad |
| collection | DOAJ |
| description | Purpose: The present study was conducted to gather evidence to investigate the relationship between cash holdings, firm value, and financial performance of companies' constraints in financing the Iranian capital market.Methodology: This study was investigated for 91 companies (number of observations 728) in 8 years between 2012 and 2019. Also, panel data regression was used to test the relationships between variables.Findings: The results indicate a nonlinear relationship between cash holdings and performance, and this relationship is inverted U-shaped. Also, this relationship has existed with the performance variable (ROE) as an alternative variable. This study shows a negative relationship between the non-optimal level of cash holdings and financial performance. The results indicate that companies with financial constraints hold cash holdings, which will reduce financial performance.Originality/Value: Evidence of a nonlinear relationship between firm performance and cash holdings under company-specific conditions gives managers and investors the insight to examine the performance of companies, future value, and how they make decisions in certain circumstances, such as financial constraints for companies |
| format | Article |
| id | doaj-art-ed2c5f5cd3214d01a32228c74fb7e798 |
| institution | Kabale University |
| issn | 2783-1345 2717-4581 |
| language | fas |
| publishDate | 2022-02-01 |
| publisher | Ayandegan Institute of Higher Education, Tonekabon, |
| record_format | Article |
| series | مدیریت نوآوری و راهبردهای عملیاتی |
| spelling | doaj-art-ed2c5f5cd3214d01a32228c74fb7e7982025-01-30T14:59:44ZfasAyandegan Institute of Higher Education, Tonekabon,مدیریت نوآوری و راهبردهای عملیاتی2783-13452717-45812022-02-012443444610.22105/imos.2021.314356.1184140271Cash Holding, Firm Value and Performance under Financial Constraint: A Case Study of the Iranian Capital MarketAzadeh Shemshad0Mohsen Imeni1Department of Accounting and Control, Erasmus University, Rotterdam, Netherlands.Department of Accounting, Ayandegan Institute of Higher Education, Tonekabon, Iran.Purpose: The present study was conducted to gather evidence to investigate the relationship between cash holdings, firm value, and financial performance of companies' constraints in financing the Iranian capital market.Methodology: This study was investigated for 91 companies (number of observations 728) in 8 years between 2012 and 2019. Also, panel data regression was used to test the relationships between variables.Findings: The results indicate a nonlinear relationship between cash holdings and performance, and this relationship is inverted U-shaped. Also, this relationship has existed with the performance variable (ROE) as an alternative variable. This study shows a negative relationship between the non-optimal level of cash holdings and financial performance. The results indicate that companies with financial constraints hold cash holdings, which will reduce financial performance.Originality/Value: Evidence of a nonlinear relationship between firm performance and cash holdings under company-specific conditions gives managers and investors the insight to examine the performance of companies, future value, and how they make decisions in certain circumstances, such as financial constraints for companieshttp://www.journal-imos.ir/article_140271_90fae5f179a1b1cbe3d5b9099fc6efda.pdffinancial constraints. cash holdings. firm value. financial performance |
| spellingShingle | Azadeh Shemshad Mohsen Imeni Cash Holding, Firm Value and Performance under Financial Constraint: A Case Study of the Iranian Capital Market مدیریت نوآوری و راهبردهای عملیاتی financial constraints. cash holdings. firm value. financial performance |
| title | Cash Holding, Firm Value and Performance under Financial Constraint: A Case Study of the Iranian Capital Market |
| title_full | Cash Holding, Firm Value and Performance under Financial Constraint: A Case Study of the Iranian Capital Market |
| title_fullStr | Cash Holding, Firm Value and Performance under Financial Constraint: A Case Study of the Iranian Capital Market |
| title_full_unstemmed | Cash Holding, Firm Value and Performance under Financial Constraint: A Case Study of the Iranian Capital Market |
| title_short | Cash Holding, Firm Value and Performance under Financial Constraint: A Case Study of the Iranian Capital Market |
| title_sort | cash holding firm value and performance under financial constraint a case study of the iranian capital market |
| topic | financial constraints. cash holdings. firm value. financial performance |
| url | http://www.journal-imos.ir/article_140271_90fae5f179a1b1cbe3d5b9099fc6efda.pdf |
| work_keys_str_mv | AT azadehshemshad cashholdingfirmvalueandperformanceunderfinancialconstraintacasestudyoftheiraniancapitalmarket AT mohsenimeni cashholdingfirmvalueandperformanceunderfinancialconstraintacasestudyoftheiraniancapitalmarket |