Cash Holdings, Firm Value and Corporate Governance Anabestani Zohreha,,b, Shourvarzi Mohammad Rezac,,d aFaculty of Letters, Islamic Azad University of Najafabad bM.A. Student, Accounting, Islamic Azad University, Iran cFaculty of Humanities, Islamic Azad University, Neyshabour dAssistant Professor, Islamic Azad University, Iran Online published on 15 April, 2014. Abstract The present study mainly aims to assess the relationship between cash holdings, firm value and corporate governance on Tehran stock exchange. It is intended to discover whether there is a significant relationship between cash holdings, firm value and corporate governance or not. To achieve this goal, the effects of the following factors on cash holdings were examined: financial leverage, firm size, the percentage of non-executive directors, the percentage of institutional investors, firm value, earnings before interest and taxes (EBIT), financial expenses, cash flows, and opportunity cost of capital. Multiple regression model, based on panel data analysis, was applied to assess the aforementioned relationship, and their significance was determined by F and T statistics. The model's coefficient of correlation was appraised by F-Limer and Hausman tests. Target population of the research contained 99 listed companies on Tehran stock exchange over a 6-year-period from 2006 to 2011. The achieved findings indicated that there is no significant relationship between cash holdings, firm value and corporate governance; there is a significant positive relationship between cash holdings and corporate governance; there is no significant relationship between cash holdings and firm value. Top Keywords Cash holdings, firm value, corporate governance. Top |