Investigating relation between Political Connections and Cash Holding in Companies Listed on Tehran Stock Exchange

Iraj Rahmani, Ataollah Mohamadi Malgharni

Abstract


 We examine the relation between Political connections measured through lobbying activities and percent State ownership. This is an interesting question as many of the motives for holding cash should be diminished by political connections. To conduct this research , we have used information concerning 105 companies listed in Tehran Stock Exchange during financial periods 2010-2015. In addition, the research is the type of post-event descriptive practice, which for testing the research hypothesis the multi-variable regression of data is used. Results indicate a significant and inverse relation between cash levels and lobby expenses and Percent state ownership ،that the marginal level of cash decreases with increase lobbying and Percent state ownership.


Keywords


Cash, Cash holdings , Corporate lobbying , Political connections , state ownership.

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