Asset Tangibility, Cash Holding and Financial Development

The present study investigates the moderating effect of financial development on the relationship between tangible assets and cash holdings of listed companies in Tehran Stock Exchange. The statistical population of the present study includes all companies listed in Tehran Stock Exchange. In order to select the sample size, the systematic elimination sampling method (screening) was used. The 7-year-olds were analyzed between 2011 and 2016 (a total of 1008 years-in-company). Multivariate regression methods using Eviews8 software and panel data method (panel-fixed effects) were used to test the hypotheses. The results show that there is a negative and significant relationship between tangible assets and cash holdings of companies. Also, financial development does not have a significant negative effect on the relationship between tangible assets and corporate cash holdings.