Mousa Yousefi; Ali Asghar Farajzadeh; Alireza Nasirpour
Volume 2, Issue 10 , October 2015, , Pages 1218-1229
Abstract
The current research is studying the role of ownership structure and cash holding on the accepted companies' value in Tehran Stock Exchange. The sample of the research includes 62 corporations within 2008 to 2013.The ownership structure can direct the corporate toward better performance and increasing ...
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The current research is studying the role of ownership structure and cash holding on the accepted companies' value in Tehran Stock Exchange. The sample of the research includes 62 corporations within 2008 to 2013.The ownership structure can direct the corporate toward better performance and increasing its value and has remarkable importance for increasing the company's success and society's economics. According to the results based on variance analysis, there is positive and significant relationship between ownership structure and corporate value while there are not significant relationships between other independent variables such as the size of the board of directors, power of the board of directors and cash holding with dependent variable (corporate value). Regarding the controlled variables of the research, which are financial leverage, dividend payout ratio, Q Tubin, there is a positive and significant relationship between the corporate value and financial leverage, while the other controlled variables do not have significant relationship with corporate value.
Javad Zahedi; Elahe Talebi; Shadi Laal Aval
Volume 2, Issue 8 , August 2015, , Pages 902-912
Abstract
The purpose of the study is to explore the relationship between ownership concentration and firm value in the Tehran Stock Exchange (TSE). The previous research indicates that ownership structure as an external corporate governance mechanism can influence firm value. In this study, the effect of ...
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The purpose of the study is to explore the relationship between ownership concentration and firm value in the Tehran Stock Exchange (TSE). The previous research indicates that ownership structure as an external corporate governance mechanism can influence firm value. In this study, the effect of the type of ownership on company assessment is examined along with level of cash holding. It is expected that firm value will increase as management ownership increases by reducing cash holdings. We also predict firm value is lower in companies with high cash holding and having ownership concentration. In the study, using financial statement information of companies listed on the TSE from 2004 to 2013, the relationship of this subject is addressed. The results of regression analysis in support of the hypothesis indicate firm value declines as ownership concentration increases when company’s cash holding mounts. On the whole, the results of the study shows that level of cash holdings which goes hand in hand with level of ownership concentration can reduce firm value.