Investigating The Relationship Between Cash Assets, Sensitivity of Investment Flows and Financing Costs of Listed Companies In Tehran Stock Exchange

Cash holding is an identification channel for threat economic unit; accordingly the changes caused by it will affect financing costs and cash flow sensitivity of investment probably. Cash holding reduces the risk of financial crisis and is considered as a safe store for exposure to unexpected losses. In this regard, this research will investigate the relationship between cash holdings, cash flow sensitivity of investment and financing costs on firms listed in Tehran Stock Exchange. In this study, a total of 142 companies listed in Tehran Stock Exchange during 2009-2013have been investigated. In order to test the hypotheses, linear regression model has been used (pooled). The results show that cash holding has a meaningful relationship with cash flow sensitivity of investment, but has a negative and significant relationship with financing costs.