Asymmetric cash flow sensitivity of cash holdings in Tehran Stock Exchange Companies Listed

Companies hold significant part of their assets in cash. This study mainly aims to assess the asymmetrical relationship between cash flow sensitivity of cash (changes at the level of cash holdings in proportion to changes in cash flows) and operating cash flow sign. Furthermore, the effect of financial constraint is appraised in this research. Multiple linear regression models were applied to analyze 148 companies over the 2006 to 2011 years. The findings indicated an asymmetrical relationship between cash flow sensitivity of cash and positive or negative cash flows. On the other hand, there is a significant difference between cash flow sensitivity of cash and positive or negative cash flow. The results also showed that financial constraints are not significantly influential in cash flow sensitivity of cash.