چکیده:
Nowadays, business groups play an outstanding role in financial markets. Corporates
in the trading groups are able to use technology, capital, human resources,
productions and services of other members in the group in addition to their own
resources and capabilities. Thus, this paper studies the effect of business group
affiliation on cash holdings and return on equity. The sample involves 94 corporates
among those accepted in Tehran Stock Exchange. In this research, the effect
of business group affiliation on cash holdings and return on equity during 2010-
2015 has been investigated; in total, it includes 564 observations for the research.
Statistical method applied here is the multivariate regression in the data panel
way. Results achieved by the research hypotheses indicate that there is a significant
relationship between business group affiliation, cash holdings and return on
equity.
خلاصه ماشینی:
Business group affiliation, Corporate cash holdings, Returns on equity ABSTRACT Nowadays, business groups play an outstanding role in financial markets.
Results achieved by the research hypotheses indicate that there is a signifi- cant relationship between business group affiliation, cash holdings and return onequity.
Samphantharak [14] applied a sample of 907 corporates in Thailand Stock Exchange during 1993- 1996 to study the internal capital markets in business groups and concluded that group size, control variables and intragroup mediators were directly related to tendency towards facilitating allocation of resources.
Khodamipour and Habibi [4] in a research on the effect of membership in a business group on profit quality proposed that business group refers to a set of legal corporates with an independent legal per- sonality and unit reporting one.
Qolami [6] reviewed the relationship between the membership in a business group and profit man- agement in the corporates accepted in Tehran Stock Exchange using annual data during 2007-2012 in a correlation study based upon combined data.
Thus, in this research, it is to review whether business group affil- iation affects the corporate cash holdings and return on equity of shareholders in the corporates in Teh- ran Stock Exchange.
(View the image of this page) To investigate the relationship between business group affiliation and return on equity of sharehold- ers in the corporates in Tehran Stock Exchange, the following regression model will be used.
(View the image of this page) 4 Research Methodology There are two main hypotheses throughout this paper as follows: 1- There is a significant relationship between business group affiliation and corporate cash holdings.