Studying relationship between capital structure, cash holding and stock companies market value

The goal in this study is studying effects of capital structure and cash holding on company’s market value. Furthermore, we Studying effects cash holding on capital structure of registered companies in Tehran stock exchange. Thus 117 companies examined during period 1388-1392. In literature collecting we used library method. Also other needed information for measuring variables, extracted financial statements and Novin Rahavard software and classified by Excel and necessary calculations done by Eviews 8 and Sata 12 software. To test study’s hypothesis has been used generalized least squares method in 95% level. First hypothesis results was determined that cash holding and capital structure, effect on company’s market value, simultaneously and hypothesis was accepted. Cash holding has negative significant effect on capital structure in second hypothesis, which was accepted too.

Keywords:

capital structure , financial leverage , cash holding , company’s market value