Value of One Rials Cash Held by the Company from a Shareholder’s Perspective

The Tradeoff Theory explain that there is always an optimum level of cash holding in the company, in contrast to other theories about how much cash is kept, such as the hierarchy of finance theory, believes that there is no optimal level for cash holding in the company. In this study, for the purpos...

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Autores principales:	Hossein Sajadi (Ph.D), Reza Safikhani
Formato:	article
Lenguaje:	FA
Publicado:	Shahid Bahonar University of Kerman 2018
Materias:	cash holdings hierarchical theory trade off theory Accounting. Bookkeeping HF5601-5689
Acceso en línea:	https://doaj.org/article/7658e72bf0dd4d4a86d50d4333a25078
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spelling	oai:doaj.org-article:7658e72bf0dd4d4a86d50d4333a250782021-11-04T19:53:59ZValue of One Rials Cash Held by the Company from a Shareholder’s Perspective2008-89142476-292X10.22103/jak.2018.10742.2472https://doaj.org/article/7658e72bf0dd4d4a86d50d4333a250782018-07-01T00:00:00Zhttps://jak.uk.ac.ir/article_2044_36195572841a67598922fa2a8d2a5711.pdfhttps://doaj.org/toc/2008-8914https://doaj.org/toc/2476-292XThe Tradeoff Theory explain that there is always an optimum level of cash holding in the company, in contrast to other theories about how much cash is kept, such as the hierarchy of finance theory, believes that there is no optimal level for cash holding in the company. In this study, for the purpose of tradeoff theory test, we examine the deviation from the optimal level of cash holdings and value from shareholders' perspective. The data of this research includes 770 companies listed in Tehran Stock Exchange during the period of 2009-2015. To assess the theory of cash holing by the company, it was divided into two parts: (1) optimal level of cash holdings; (2) deviation from the optimal level of cash of the company. The results of the research show that when changes in cash holdings are such that cash are closing to optimal level. A one rial for shareholders is worth more than one rial (1.13 riyals), and vice versa when adding a riyal to the company's cash leads to away from the optimal level of cash, one added rial worth less than one riyal (0.97 rial) .Therefore, the results of this research are consistent with the theory of balance of cash holdings.Hossein Sajadi (Ph.D)Reza SafikhaniShahid Bahonar University of Kermanarticlecash holdingshierarchical theorytrade off theoryAccounting. BookkeepingHF5601-5689FAمجله دانش حسابداری, Vol 9, Iss 2, Pp 35-66 (2018)
institution	DOAJ
collection	DOAJ
language	FA
topic	cash holdings hierarchical theory trade off theory Accounting. Bookkeeping HF5601-5689
spellingShingle	cash holdings hierarchical theory trade off theory Accounting. Bookkeeping HF5601-5689 Hossein Sajadi (Ph.D) Reza Safikhani Value of One Rials Cash Held by the Company from a Shareholder’s Perspective
description	The Tradeoff Theory explain that there is always an optimum level of cash holding in the company, in contrast to other theories about how much cash is kept, such as the hierarchy of finance theory, believes that there is no optimal level for cash holding in the company. In this study, for the purpose of tradeoff theory test, we examine the deviation from the optimal level of cash holdings and value from shareholders' perspective. The data of this research includes 770 companies listed in Tehran Stock Exchange during the period of 2009-2015. To assess the theory of cash holing by the company, it was divided into two parts: (1) optimal level of cash holdings; (2) deviation from the optimal level of cash of the company. The results of the research show that when changes in cash holdings are such that cash are closing to optimal level. A one rial for shareholders is worth more than one rial (1.13 riyals), and vice versa when adding a riyal to the company's cash leads to away from the optimal level of cash, one added rial worth less than one riyal (0.97 rial) .Therefore, the results of this research are consistent with the theory of balance of cash holdings.
format	article
author	Hossein Sajadi (Ph.D) Reza Safikhani
author_facet	Hossein Sajadi (Ph.D) Reza Safikhani
author_sort	Hossein Sajadi (Ph.D)
title	Value of One Rials Cash Held by the Company from a Shareholder’s Perspective
title_short	Value of One Rials Cash Held by the Company from a Shareholder’s Perspective
title_full	Value of One Rials Cash Held by the Company from a Shareholder’s Perspective
title_fullStr	Value of One Rials Cash Held by the Company from a Shareholder’s Perspective
title_full_unstemmed	Value of One Rials Cash Held by the Company from a Shareholder’s Perspective
title_sort	value of one rials cash held by the company from a shareholder’s perspective
publisher	Shahid Bahonar University of Kerman
publishDate	2018
url	https://doaj.org/article/7658e72bf0dd4d4a86d50d4333a25078
work_keys_str_mv	AT hosseinsajadiphd valueofonerialscashheldbythecompanyfromashareholdersperspective AT rezasafikhani valueofonerialscashheldbythecompanyfromashareholdersperspective
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Value of One Rials Cash Held by the Company from a Shareholder’s Perspective

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