Effect of Business Groups Affiliation on Cash Holdings and Return on Equity

Advances in Mathematical Finance and Applications

مقاله 1، دوره 2، شماره 4، اسفند 2017، صفحه 1-9   

نوع مقاله: Research Paper

شناسه دیجیتال (DOI): 10.22034/amfa.2017.536262

نویسندگان

Reza Tehrani^{* 1}؛ Roohallah Ahmadi Ardakani²

¹Department of Financial Management, Faculty of Management, Tehran University, Tehran, Iran

²Department of Accounting, Mahalat Branch, Islamic Azad University, Mahalat, Iran

چکیده

Nowadays, business groups play an outstanding role in financial markets. Corporates in the trading groups are able to use technology, capital, human resources, productions and services of other members in the group in addition to their own resources and capabilities. Thus, this paper studies the effect of business group affiliation on cash holdings and return on equity. The sample involves 94 corporates among those accepted in Tehran Stock Exchange. In this research, the effect of business group affiliation on cash holdings and return on equity during 2010-2015 has been investigated; in total, it includes 564 observations for the research. Statistical method applied here is the multivariate regression in the data panel way. Results achieved by the research hypotheses indicate that there is a significant relationship between business group affiliation, cash holdings and return on equity.

کلیدواژه‌ها

Business group affiliation؛ Corporate cash holdings؛ Returns on equity

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