Impace of Corporate Social Responsibility to Cash Holdings Through Synchronous Effect of Chosen Variables

In recent years, there is a lot of attention to keep the cash in companies in financial literatures. This interest has come up from this reality that companies have reported significant amounts of cash in their balance sheet. Company’s social responsibility is one of the most effective factors in social and financial operation and plays a key role in investors reactions to a company. The main purpose of the present study is to evaluate the social responsibility of companies and their effects on keeping cash through systematic risk index and non-systematic risk and corporate sovereignty. To test the hypothesis, a sample of 91 companies from the accepted ones is Tehran securities exchange was choosen in 2009to 2016. The appropriate method to test the hypothesis is to assess the synchronous equation system through (3SLS) minimum three level has squares. The results show that social responsibility through idiosyncratic risk is a significant and positive impact on cash holdings. As well as social responsibility through systematic risk has a significant negative impact on its cash holdings. The results show social responsibility through corporate governance has positive significant effect on its cash holdings.