Determination the Impact of Cash Holdings and Financing on Investment-Cash Flow Sensitivity

Companies with limited financing in order to take advantage of profitable investment opportunities in the future and prevent the unexpected failure to take advantage of investment opportunities, much of that accumulated cash flow. Companies with limited financing from cash flow sensitivity of cash are higher than companies without financial constraints, companies with financial constraints strong desire to accumulate cash in excess of cash flow and debt levels themselves are not changed. In contrast, companies with financial constraints and needs of the bottom cover similar companies acted without limitation financing, mainly to reduce debt and only low amounts of excess cash flow to account for cash transfer. In this study, the sensitivity of investment to keep the cash and financing cash flows has been investigated. The population of this research firms listed in the Tehran Stock Exchange and the sample contains data for the period of 7 years from 1392 to 1386 was 101 companies. And sampling, systematic elimination method. And the method used to estimate the multivariate regression model and panel data methods. The results showed that between holding cash and investing cash flows sensitive and there is a direct relationship. The ratio between debt and cash flow sensitivity of investment and there is a direct correlation, but between long-term debt and invest the sensitivity of cash flows There is no significant relationship. That by using generalized least squares (GLS) was found between long-term debt and cash flow sensitivity of investment there is a significant relationship. In addition, the results indicated that the interaction of cash flows and kept the cash investment cash flow sensitivity and there is a direct relationship.