European Online Journal of Natural and Social Sciences: Proceedings
Abstract
The main purpose of this study is to study the influence of the cash flow sensitivity to the institutional ownership on the level of cash holding among listed companies in Tehran Stock Exchange. Accordingly, to test the research hypotheses, financial data of 69 companies which published their financial statements during a five years period 2008-2012, were selected by using the systematic classified sampling. The variation of cash in the current year to the previous year was used as cash flow and level of the cash holding upon the past study of Bao et al. (2012). The selected approach was based on the mixing of the modulated data and the regression method of the merged least squares. The results from the research hypothesis test shows that the sensitivity of the cash flow to the institutional ownership has a reverse effect on the variations of the level of cash holding
