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:: year 16, Issue 63 (2025) ::
fa 2025, 16(63): 88-101 Back to browse issues page
The Role of Earning Stability on the Cash Value Relevance with Emphasis on the Role of Institutional Shareholders
Ali Gerami1 , Mohsen Dastgir *1 , Saeid Aliahmadi1
1- Department of Accounting, Isfahan (Khorasgan) Branch, Islamic Azad University, Isfahan, Iran.
Abstract:   (11 Views)
Sustainable earning can change the investor’s evaluation of cash value in the company, and institutional investors can influence this evaluation by solving agency problems. The purpose of this study is to examine the role of earning stability on the cash value relevance, taking into account the modifying role of the presence of institutional shareholders. In this regard, the data of 142 companies listed in Tehran Stock Exchange during the period from 2012 to 2021 were collected and analyzed using the method of systematic deletion. To test the hypotheses, the multiple regression model was used in the form of panel data and with the fixed effects method. The results showed that keeping cash has a positive relationship with the company's value, but earning stability does not increase the value of cash in the company. Also, the results showed that institutional shareholders do not strengthen the role of earning stability in the cash value relevance.
Sustainable earning can change the investor’s evaluation of cash value in the company, and institutional investors can influence this evaluation by solving agency problems. The purpose of this study is to examine the role of earning stability on the cash value relevance, taking into account the modifying role of the presence of institutional shareholders. In this regard, the data of 142 companies listed in Tehran Stock Exchange during the period from 2012 to 2021 were collected and analyzed using the method of systematic deletion. To test the hypotheses, the multiple regression model was used in the form of panel data and with the fixed effects method. The results showed that keeping cash has a positive relationship with the company's value, but earning stability does not increase the value of cash in the company. Also, the results showed that institutional shareholders do not strengthen the role of earning stability in the cash value relevance.
 
Article number: 6
Keywords: Cash Holding Level, Cash Holding Relevance, Earning Quality, Earning Stability, Institutional Shareholders
Full-Text [PDF 619 kb]   (9 Downloads)    
Type of Study: Applicable | Subject: Special
References
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Gerami A, Dastgir M, Aliahmadi S. The Role of Earning Stability on the Cash Value Relevance with Emphasis on the Role of Institutional Shareholders. fa 2025; 16 (63) : 6
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year 16, Issue 63 (2025) Back to browse issues page
فصلنامه حسابداری مالی Quarterly Financial Accounting
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