The effect of CEO Managerial Ability on Marginal Value of Cash and Corporate Opacity of Companies Listed on Tehran Stock Exchange

The efforts of the developers of the laws and regulations of capital markets over the past years have also been aimed at raising the level of information transparency in order to Companies in this field can be successful in terms of both the technical and managerial dimensions and the ability to meet the expectations of shareholders and investors. The purpose of this research is the effect of CEO Managerial Ability on Marginal Value of Cash and Corporate Opacity of Companies Listed on Tehran Stock Exchange. The research period is 2013 to 2017, and 123 firms were tested using multivariate regression model. In this research, for measuring the Managerial ability of Demerjian et al (2012), Marginal Value of Cash from Faulkender and Wang (2006) model was used to measure the final value of cash, and the model Uygur (2018) was used to measure Corporate Opacity. Findings of the research show that asset companies have higher managerial ability than asset companies. The lower managerial ability has a more positive and positive effect on the on Marginal Value of Cash. It was found firms with higher managerial ability, with Trading volume and Earnings Timeliness that two criteria are Corporate Opacity, and a significant positive correlation. But with the bid-ask spread as another component of Corporate Opacity has a negative and significant relationship.