Relationship between Non-optimal Cash Holdings and Future Performance of Companies in Tehran Stock Exchange (TSE)

Cash is a critical source for business enterprises and creating balance between available cash and the required cash is the most important factor concerning the economic viability of a business enterprise. Both of the companies that do not hold enough cash or hold too much cash, face too much proble...

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Autores principales:	Ghasem Bulu, Jafar Babajani, Bahram Mohseni Maleki
Formato:	article
Lenguaje:	FA
Publicado:	Shahid Bahonar University of Kerman 2013
Materias:	keywords: estimated optimum cash holdings return on net operating assets (rnoa) excess cash insufficient cash Accounting. Bookkeeping HF5601-5689
Acceso en línea:	https://doaj.org/article/58da0be2ebe04225a84dd3186a9c8704
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spelling	oai:doaj.org-article:58da0be2ebe04225a84dd3186a9c87042021-11-04T19:43:22ZRelationship between Non-optimal Cash Holdings and Future Performance of Companies in Tehran Stock Exchange (TSE)2008-89142476-292X10.22103/jak.2013.502https://doaj.org/article/58da0be2ebe04225a84dd3186a9c87042013-02-01T00:00:00Zhttps://jak.uk.ac.ir/article_502_b8c62f20c75297d78a6469044973aa3b.pdfhttps://doaj.org/toc/2008-8914https://doaj.org/toc/2476-292XCash is a critical source for business enterprises and creating balance between available cash and the required cash is the most important factor concerning the economic viability of a business enterprise. Both of the companies that do not hold enough cash or hold too much cash, face too much problems. This paper investigates the impact of deviation from the estimated optimal cash level on firms’ future performance (return on net operating assets) In this paper, first, the optimum (acceptable) cash level for companies is estimated, then, it was asked whether the future performance of a company may be affected by deviation from the estimated optimal cash holdings, or not. To examine the research hypothesis, the financial data for 144 companies working in Tehran Stock Exchange (TSE) have been selected between the years 1385-1388 have been selected. In this research, we made use of rolling regression with panel data method for hypothesis testing. The results showed that the negative expected relationship between deviation from optimal cash holdings and the one-year-ahead return on net operating assets could not be accepted.Ghasem BuluJafar BabajaniBahram Mohseni MalekiShahid Bahonar University of Kermanarticlekeywords: estimated optimum cash holdingsreturn on net operating assets (rnoa)excess cashinsufficient cashAccounting. BookkeepingHF5601-5689FAمجله دانش حسابداری, Vol 3, Iss 11, Pp 7-29 (2013)
institution	DOAJ
collection	DOAJ
language	FA
topic	keywords: estimated optimum cash holdings return on net operating assets (rnoa) excess cash insufficient cash Accounting. Bookkeeping HF5601-5689
spellingShingle	keywords: estimated optimum cash holdings return on net operating assets (rnoa) excess cash insufficient cash Accounting. Bookkeeping HF5601-5689 Ghasem Bulu Jafar Babajani Bahram Mohseni Maleki Relationship between Non-optimal Cash Holdings and Future Performance of Companies in Tehran Stock Exchange (TSE)
description	Cash is a critical source for business enterprises and creating balance between available cash and the required cash is the most important factor concerning the economic viability of a business enterprise. Both of the companies that do not hold enough cash or hold too much cash, face too much problems. This paper investigates the impact of deviation from the estimated optimal cash level on firms’ future performance (return on net operating assets) In this paper, first, the optimum (acceptable) cash level for companies is estimated, then, it was asked whether the future performance of a company may be affected by deviation from the estimated optimal cash holdings, or not. To examine the research hypothesis, the financial data for 144 companies working in Tehran Stock Exchange (TSE) have been selected between the years 1385-1388 have been selected. In this research, we made use of rolling regression with panel data method for hypothesis testing. The results showed that the negative expected relationship between deviation from optimal cash holdings and the one-year-ahead return on net operating assets could not be accepted.
format	article
author	Ghasem Bulu Jafar Babajani Bahram Mohseni Maleki
author_facet	Ghasem Bulu Jafar Babajani Bahram Mohseni Maleki
author_sort	Ghasem Bulu
title	Relationship between Non-optimal Cash Holdings and Future Performance of Companies in Tehran Stock Exchange (TSE)
title_short	Relationship between Non-optimal Cash Holdings and Future Performance of Companies in Tehran Stock Exchange (TSE)
title_full	Relationship between Non-optimal Cash Holdings and Future Performance of Companies in Tehran Stock Exchange (TSE)
title_fullStr	Relationship between Non-optimal Cash Holdings and Future Performance of Companies in Tehran Stock Exchange (TSE)
title_full_unstemmed	Relationship between Non-optimal Cash Holdings and Future Performance of Companies in Tehran Stock Exchange (TSE)
title_sort	relationship between non-optimal cash holdings and future performance of companies in tehran stock exchange (tse)
publisher	Shahid Bahonar University of Kerman
publishDate	2013
url	https://doaj.org/article/58da0be2ebe04225a84dd3186a9c8704
work_keys_str_mv	AT ghasembulu relationshipbetweennonoptimalcashholdingsandfutureperformanceofcompaniesintehranstockexchangetse AT jafarbabajani relationshipbetweennonoptimalcashholdingsandfutureperformanceofcompaniesintehranstockexchangetse AT bahrammohsenimaleki relationshipbetweennonoptimalcashholdingsandfutureperformanceofcompaniesintehranstockexchangetse
_version_	1718444650367287296

Relationship between Non-optimal Cash Holdings and Future Performance of Companies in Tehran Stock Exchange (TSE)

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