The Relationship between Ownership and the Level of Cash Holdings

Hosein Ojaghi, Siros Olfati, Hosein Rahmanian


The main objective of this study was to investigate the relationship between ownership and corporates’ cash holdings level. The statistical population of this study was the corporates listed in Tehran Stock Exchange during the years 2008 to 2014 that the sample size according to the method of screening and after the removal of outlier observations was equal to 118 corporates. In this study, large and small institutional shareholders and governmental ownership were considered as independent variables in order to study their impact on the corporates’ cash holdings level. The current study was kind of applied research according to its purpose and its plan was a post-event research (using data from the past). Library method and the information on the Stock Exchange website as well as new Rahavar and Tadbirpardaz applications were used to gather information. In this study, according to data type and current methods of statistical analysis, the method of "combined data" was used. In this study in which Panel Data with fixed effects was used, the results of the analysis of corporate data using multivariate regression in the level of %95 showed that in order there was an inverse and direct relationship between large institutional shareholders and governmental ownership and cash holdings level. The results also showed there was no significant relationship between small institutional shareholders and corporates’ cash holdings level.


Institutional ownership, governmental ownership, cash holdings level.

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