The effectiveness test of customer concentration on cash holdings adjustment speed in listed companies in Tehran Stock Exchange

The customer concentration can increase the cash input flow risk, the need to additional cash holdings and the risk of corporate future financial crisis, which could affect cash holdings level and cash holdings adjustment speed. The purpose of this study was to examine the effectiveness test of customer concentration on cash holdings adjustment speed in listed companies in Tehran Stock Exchange. In this regard, have been investigated 140 companies (980 firm-year observations) accepted in the Tehran Stock Exchange during the period from 2011 to 2017. In order to test the hypotheses of the research, has been used multiple linear regression model using combined data (panel method). The results of this research indicate that the customer concentration on cash holdings level and cash holdings adjustment speed hase positive and significant effect. In other words, in companies to major customer, cash holdings level and cash holdings adjustment speed have been higher. These results explainer the importance and effectiveness of the role the company major customers in increasing the cash holdings level and cash holdings adjustment speed.