The Investigation the relationship between the Conservatism in the Financial Reporting and the Cash Holdings of the Listed Companies in TSE

Abstract The aim of this research is to investigate the relationship between the Conservatism in the Financial Reporting and the Cash Holdings of the Listed Companies in TSE. In this study, Givoley & Hyan (2000) model was used for measuring of the conservatism and Ozkan & Ozkan (2004) and Opler et al. (1999) models were exerted to determine of the cash holdings magnitude. To do of this research, 54 listed companies in TSE during 2007-2011 via pooled regression models (fixed effects) were investigated. Findings indicate that the conservatism doesn’t affect the cash holdings. Also, results show that larger companies hold more cash, however, the companies with more opportunity cost and substituted assets hold less cash.