Institutional Ownership Moderating Role and Financing Constraints on Relation between Excess of Cash Holding and Change in Firm Value

Document Type : Original Article

Authors

1 Ph.D. Student and Instructor of Accounting, Mobarakeh Branch, Islamic Azad University, Mobarakeh, Iran

2 Accounting, Faculty of Management and Accounting, Islamic Azad University, Mobarakeh Branch, Iran

Abstract

Responsiveness to certain elements of financial policies such as financing, institutional Ownership and liquidity that the firm needs to continue to help managers to develop a specific plan.This research purpose is to investigate Institutional Ownership moderating role and Financing Constraints on relation between excess of cash holding and change in firm value. The statistical population consists of all companies accepted in Tehran stock exchange in which a sample of 104 firms selected using systematic elimination method then investigated during the period of 2010-2015. For data analysis and Hypothesis Testing, statistical multiple Panel Data method by regression models were applied. Findings shows that excess of cash holding has a positive effect on firm value. In addition, results confirm that financial Constraints influences the relationship between excess of cash holding and firm value significantly. Besides, based on results the link between excess of cash holding and firm value is affected by presence of Institutional Ownership and financial Constraints.

Keywords

Journal of Iranian Accounting Review
Volume 5, Issue 18
June 2018
Pages 1-26

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