Inflation, Operating Cycle, Cash Holding

Document Type: Research Paper

Authors

Department of Accounting, Khomein Branch, Islamic Azad University, Khomein ,Iran

Abstract

The purpose of this paper is to examine the effects of inflation and operating cycle on cash holding in Tehran Stock Exchange in the period 2010 to 2014.The sample is comprised of 103 companies which are selected by systematic elimination method and total of 515 year-firm collected. In this study for testing the hypothesis is used of linear regression and correlation. To analyse data and test hypotheses is used of Eviews software. After designing and testing hypotheses for each main hypothesis, it was concluded that inflation and operational cycle has not a significant impact on the level of firm's cash holding. The results show no significant effect of inflation through the operating cycle on cash holding.

Keywords

Main Subjects


[1] Benjamin Y., Kwaku A. S., Working Capital Management and Cash Holdings of Banks in Ghana, European Journal of Business and Management, 2013, 4(13), P. 35-78.

[2] Garcia-Teruel P.J., Martinez Solano P., Sanchez-Ballesta J.P., Accruals Quality and Corporate Cash Holdings, Journal of Accounting and Finance, 2003, 4(9), P. 95-115.

[3] Hall T., Mateus C., Mateus I.B., What determines cash holdings at privately held and publicly traded firms? Evidence from 20 emerging markets, International Review of Financial Analysis, 2013, 3(3), P. 104–116.

[4] Kusnadi Y., Yang Z., Zhou Y., Institutional development, state ownership, and corporate cash holdings: Evidence from China, Journal of Business Research, 2015, 68(2), P. 351–359.

[5] Lau J., Joern H., Corporate Cash Holdings and their Implications on Firm Value in Family and Founder Firms.Corporate Ownership and Control, Forthcoming, 2012, 9(4), P. 309-326.

[6] Melikian E., Mohammadi M., Examining the relation between cash holding and its determinants in companies listed in the Tehran Stock Exchange, Accounting Research, 2012, 3(5), P. 11-96.

[7] Rasaiian A., Rahimi F., Hanjary S., The effects of internal organizational mechanisms of corporate governance on the level of cash holding in Tehran Stock Exchange, Accounting and Auditing Reviews, 2012, 1(4), P. 1-125.

[8] Sepasy S., Kajani M.I., Safikhani R., Inflation, operating cycle and cash holding. Accounting and Auditing Reviews, 2016, 22, (4), P. 441-460.

[9] Sun Q., Yung K., Rahman H., Earning Quality and Corporate Cash Holdings, Accounting & Finance, 2011, 43(2), P. 1467-1629.

[10] Wang Y., Ji Y., Chen X., Song C., Inflation, operating cycle, and cash holdings, China Journal of Accounting Research, 2014, 7(4), P. 263–276.

[11] Zhenxu T., Firm diversification and the value of corporate cash holdings, Journal of Corporate Finance, 2009, 1(7), P. 741–758.