Azam Sadegh zadeh - Sama Technical and vocation Training College, Islamic Azad University , Rudehen Branch, Rudehen, Iran

Here the relationship between over-investment and the cash value is examined. In this study, cash value is measured through market reaction to cash changes. The present study has taken place for the period of 2006 to 2014 in Tehran Stock Exchange. The statistical method used in this study is generalized squares (GLS). The results show that the cash changes have positive impacts on the market value of firms. The results of this study showed that there is an inverse relationship between over-investment and end value of cash.

investment, end value of cash, the market reaction