Role of Accounting Conservatism and Earnings Quality on Marginal Value of Cash Holdings in Companies Listed in Tehran Stock Exchange

One of the most important financial decisions of managers is determining the level of cash holdings. Recent studies find that deviation from the optimal level of cash holdings may reduce the market value of company and its performance. This paper investigates whether accounting conservatism and earn...

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Autores principales:	Hamid Ahmadzadeh, Afsaneh Soroushyar
Formato:	article
Lenguaje:	FA
Publicado:	Shahid Bahonar University of Kerman 2015
Materias:	accounting conservatism earnings quality cash holdings value of company Accounting. Bookkeeping HF5601-5689
Acceso en línea:	https://doaj.org/article/c168cb9b52fb4949829dedc8b2ec8077
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spelling	oai:doaj.org-article:c168cb9b52fb4949829dedc8b2ec80772021-11-04T19:47:55ZRole of Accounting Conservatism and Earnings Quality on Marginal Value of Cash Holdings in Companies Listed in Tehran Stock Exchange2008-89142476-292X10.22103/jak.2015.991https://doaj.org/article/c168cb9b52fb4949829dedc8b2ec80772015-09-01T00:00:00Zhttps://jak.uk.ac.ir/article_991_874682388add3976a93450eba9fc3f83.pdfhttps://doaj.org/toc/2008-8914https://doaj.org/toc/2476-292XOne of the most important financial decisions of managers is determining the level of cash holdings. Recent studies find that deviation from the optimal level of cash holdings may reduce the market value of company and its performance. This paper investigates whether accounting conservatism and earnings quality could mitigate the value destruction associated with increase in cash holdings. Furthermore, this study investigates the role of accounting conservatism on marginal value of cash holdings, considering financial constraints. To test the search hypothesis, we used multiple regression analysis and the financial data of 111 sample companies in the period 2001 to 2012.The results indicated that accounting conservatism could mitigate the value destruction associated with an increase in cash holdings. Also, increasing the level of financial constraint reduces the role of accounting conservatism in improvement of market value of cash holdings. Furthermore, the relationship between earnings quality and marginal value of cash holdings is negative.Hamid AhmadzadehAfsaneh SoroushyarShahid Bahonar University of Kermanarticleaccounting conservatismearnings qualitycash holdingsvalue of companyAccounting. BookkeepingHF5601-5689FAمجله دانش حسابداری, Vol 6, Iss 21, Pp 155-176 (2015)
institution	DOAJ
collection	DOAJ
language	FA
topic	accounting conservatism earnings quality cash holdings value of company Accounting. Bookkeeping HF5601-5689
spellingShingle	accounting conservatism earnings quality cash holdings value of company Accounting. Bookkeeping HF5601-5689 Hamid Ahmadzadeh Afsaneh Soroushyar Role of Accounting Conservatism and Earnings Quality on Marginal Value of Cash Holdings in Companies Listed in Tehran Stock Exchange
description	One of the most important financial decisions of managers is determining the level of cash holdings. Recent studies find that deviation from the optimal level of cash holdings may reduce the market value of company and its performance. This paper investigates whether accounting conservatism and earnings quality could mitigate the value destruction associated with increase in cash holdings. Furthermore, this study investigates the role of accounting conservatism on marginal value of cash holdings, considering financial constraints. To test the search hypothesis, we used multiple regression analysis and the financial data of 111 sample companies in the period 2001 to 2012.The results indicated that accounting conservatism could mitigate the value destruction associated with an increase in cash holdings. Also, increasing the level of financial constraint reduces the role of accounting conservatism in improvement of market value of cash holdings. Furthermore, the relationship between earnings quality and marginal value of cash holdings is negative.
format	article
author	Hamid Ahmadzadeh Afsaneh Soroushyar
author_facet	Hamid Ahmadzadeh Afsaneh Soroushyar
author_sort	Hamid Ahmadzadeh
title	Role of Accounting Conservatism and Earnings Quality on Marginal Value of Cash Holdings in Companies Listed in Tehran Stock Exchange
title_short	Role of Accounting Conservatism and Earnings Quality on Marginal Value of Cash Holdings in Companies Listed in Tehran Stock Exchange
title_full	Role of Accounting Conservatism and Earnings Quality on Marginal Value of Cash Holdings in Companies Listed in Tehran Stock Exchange
title_fullStr	Role of Accounting Conservatism and Earnings Quality on Marginal Value of Cash Holdings in Companies Listed in Tehran Stock Exchange
title_full_unstemmed	Role of Accounting Conservatism and Earnings Quality on Marginal Value of Cash Holdings in Companies Listed in Tehran Stock Exchange
title_sort	role of accounting conservatism and earnings quality on marginal value of cash holdings in companies listed in tehran stock exchange
publisher	Shahid Bahonar University of Kerman
publishDate	2015
url	https://doaj.org/article/c168cb9b52fb4949829dedc8b2ec8077
work_keys_str_mv	AT hamidahmadzadeh roleofaccountingconservatismandearningsqualityonmarginalvalueofcashholdingsincompanieslistedintehranstockexchange AT afsanehsoroushyar roleofaccountingconservatismandearningsqualityonmarginalvalueofcashholdingsincompanieslistedintehranstockexchange
_version_	1718444616790835200

Role of Accounting Conservatism and Earnings Quality on Marginal Value of Cash Holdings in Companies Listed in Tehran Stock Exchange

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