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The effect of Financial Constraints on the Relationship Between Firm geographical Position and Cash Holdings
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Hossein Fakhari *1   , Hossein Naghdi mashhadiikolaii1 |
| 1- University Of Mazandaran |
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Abstract: (3167 Views) |
The aim of research is an Investigation of The effect of Financial Constraints on the Relationship Between Firm geographical location and Cash Holdings of the Iranian listed companies at the Tehran stock exchange. Also it Study this relationship between constrained and un-constrained companies. For this Purpose data about 199 listed companies is gathered and analyses in the cross section regressions model. Geographical location as the independent variable of the study was to measure by the cosine distance and level of cash holdings is measured by balance of cash in the end of fiscal year as dependent variable. As this research uses indicators of Whited and Wu, Kaplan-Zingals and dividends as a measures of financial constraint. The findings show that there is a significant positive relationship between the geographical location of the company and the level of cash holdings. and this relationship is stronger in firms with financial constraints. This finding re-emphasize of the existence of agency cost in the Tehran stock exchange.
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| Keywords: Firm Geographic Location, cash Holdings, Financial constraint |
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Full-Text [PDF 872 kb]
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Type of Study: Research |
Subject:
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