Investigating of the value of cash holding under firm-specific and macroeconomic uncertainty

One of the most important factors affecting economic growth and investment is ensuring the future. In fact, instability and uncertainty both at corporate level and macroeconomic level lead to management uncertainty about the future changes; as a result, managers cannot outline a clear and transparent vision of the future. The paper aims to investigate the value of cash holdings under the idiosyncratic uncertainty of corporate and macroeconomics .To this end, corporates listed in the Tehran Stock Exchange were selected during the period of 6002-6002 . The results indicate that the value of cash holdings is affected by idiosyncratic uncertainty of corporate and macroeconomics ;this means that economic uncertainty leads to a recession, and this will especially affect management decisions regarding the amount of cash holdings .Any variable increasing the macroeconomic uncertainty will increase the uncertainty of the corporate and, consequently, change management decisions .Nonetheless, uncertainty at corporate level will also directly impact on management decisions such as cash holdings.