International Academic Journal of Accounting and Financial Management

  • ISSN 2454-2350

Investigating the relationship between optimal cash and shares price in companies listed in Tehran Stock Exchange

Reza Pezeshkizadeh

Abstract: Cash profit is vital resources of every unit and a balance between available cash and cash needs is the most important factor of economic health of each unit. Since both companies that do not hold enough cash and the companies that hold a lot of cash, have many problems; hence, this study examines the relationship between optimal cash flow calculation by stock prices of companies listed on Tehran Stock Exchange. In this study, the optimal cash (acceptable) to participate estimated and continue to examine this issue whether future performance, when a business unit of the optimal level of estimated cash to be diverted, affected or not? To test the hypotheses, the financial information relating to the years 2009 to 2015, 144 companies in Tehran Stock Exchange were accepted, were chosen. The results show that there is a significant relationship between the amount of optimal cash and stock prices of listed companies.

Keywords: optimal cash, shares price, Tehran Stock Exchange

Page: 18-25

Volume 4, Issue 1, 2017