*Department of Accounting, College of Humanities, Islamic Azad University, Najafabad Branch, Najafabad, Iran
**Department of Accounting, College of Humanities, Neyshabour Branch
**Assistant professor, Islamic Azad University, Neyshabour, Iran
The present study mainly aims to assess the relationship between cash holdings corporate governance on Tehran stock exchange. It is intended to discover whether there is a significant relationship between cash holdings and corporate governance or not. To achieve this goal, the effects of the following factors on cash holdings were examined: financial leverage, firm size, the percentage of non-executive directors, the percentage of institutional investors, firm value, earnings before interest and taxes (EBIT), financial expenses, cash flows, and opportunity cost of capital. Multiple regression model, based on panel data analysis, was applied to assess the aforementioned relationship, and their significance was determined by F and T statistics. The model's coefficient of correlation was appraised by F-Limer and Hausman tests. Target population of the research contained 99 listed companies on Tehran stock exchange over a 6-year-period from 2006 to 2011. The achieved findings indicated that there is a significant positive relationship between cash holdings and corporate governance.
Cash holdings, corporate governance, inborn shareholders ownership natural
