Document Type : Research Paper
Abstract
Abstract
This study investigates the sensitivity level of cash holding associated with the optimal amount in different financial reporting quality. In this study, the financial data between the years 2008 to 2012 of 111 listed companies in Tehran stock market have been accumulated. In order to do that, Oler and Picconi (2014) as measures to calculate deviation from optimal level of cash model and Francis et al (2005) was used as an indicator to measure Financial reporting quality. The results of Regression Model of panel data with fixed and random effect show that the level of cash holding different financial reporting quality has deviation from its optimal level. In other words, the overall results delineate that as financial reporting quality is ameliorated, the amount of cash held by companies indicates less deviation from the optimal level. Other results also shows that as the quality of financial reporting quotes are improved, the companies confront with less sufficient optimal level of cash.