Excess Cash, Trading Continuity And Firms Value: Evidence from Tehran Stock Market

The purpose of this study is to investigate the impact of trading continuity on firm value.This study also examines the moderating effect of trading continuity on the relationship between Excess cash and firm value. Therefore, the information of 155 companies during the periods of 2008 to 2018 in Tehran Stock Exchange has been tested and analyzed by combined data analysis method. One of the features of this research is that for the first time, Liu model has been used to measure the continuity of transactions, which considers different dimensions of liquidity such as transaction speed, transaction volume and stock turnover. The results show that there is a positive and significant relationship between the trading continuity in the company and the firm value. Other research results show that despite the interactive variable, trading continuity has a positive and significant relationship between Excess cash and firm value. These findings indicate the role of the capital market in reducing the cost of representation at the level of Iranian companies.