Investigating the effect of optimal cash balance and deviation from the target balance on the value of the company the companies listed on the Tehran Stock Exchange

In a complete capital market, the level and dynamic changes in cash holdings are an irrelevant and incorrect decision. Many theories such as balance theory, financial hierarchy, agency theory, corporate governance theory and market timing theory have been done. A company must predict the optimal amount of cash retention in order to implement efficiently and increase the value of the company. Holding excess cash can have a negative impact on the company's performance through agency problems. In this study, the effect of optimal cash balance and deviation from the target balance on the value of the company has been investigated. The statistical population of the present study is the companies listed on the Tehran Stock Exchange during the years 1393 to 1397 that the sample size according to the screening method and after removing the pert observations is equal to 119 companies. In this study, which used panel (panel) data with fixed effects, the results The analysis of companies' data using multivariate regression at 90% confidence level shows that there is a significant positive relationship between optimal cash balance and deviation from the company's valuable target inventory. Also, other research results show that managerial ownership, institutional ownership, board independence, there is a significant and positive relationship between optimal cash balance and company value.