Evaluating the effects of the financial crisis on the cash holding policies of listed companies in Tehran Stock Exchange

Abstract

In this study, the relationship between the financial crisis and foreign exchange and policies of cash holdings will be evaluated in companies listed in Tehran Stock Exchange. This is a non-laboratory and descriptive research. In this study, two model of multivariate linear regression has been used for testing hypotheses. The statistical method used for first model is the panel method with fixed effects and the Panel method with random effects has been used for second method, also the Targeted deletion method (systematic) has been used in sampling. The population of this study is companies listed on the Tehran Stock Exchange for the period of six years, ending to 2013 and 99 companies are the number of samples after the screening. The regression results between the variables indicate that there is a significant relationship among financial crisis and dividend payout policy and operational cash flow of listed companies in Tehran Stock Exchange. The result of the research shows that investors in times of financial crisis will be deficit of operational cash flow and because of the recession (Decreasing productions and increasing the general level of prices) and increase in cost of capital and transactions (The cost of equity and debt securities), they take action to prevent exorbitant costs and also dividend more.