Firms’ Characteristics and the Relation between Financial Statements Comparability and Corporate Cash Holdings

Considering the importance of maintaining cash and comparing financial statements in the capital market, this research seeks to investigate the impact of the characteristics of the company on the relationship between the ability to compare the financial statements of corporate cash holdings. Company features include financial constraints, financial reporting quality and ownership concentration. In order to achieve the research goals, the period of 1391 to 1395 was tested. In this research, multiple linear regression has been used using panel data. The results indicate that there is a significant relationship between comparability of financial statements and cash holdings. On the basis of the findings, there was a negative and significant correlation between ownership concentration and financial reporting quality on the relationship between comparability of financial statements and cash holdings. Meanwhile, the financing limitation on the relationship between comparability of financial statements and cash holdings did not have a significanteffect. Keywords: ability to compare financial statements, cash holdings, fiscal constraints, financial reporting quality, concentration