Speed of Adjustment of Cash and Effective Corporate Factors on It

Authors

1 Professor of Accounting Department of Shahid Chamran University of Ahvaz

2 - Master of Financial Management, University of Isfahan

3 - University of Isfahan Master of Accounting

Abstract

Cash management is important tasks for corporate managers to maximize shareholders wealth and it needs to keep a balance between the cash holding costs and inadequate cash costs that type and size of these costs to some extent depends financial strategies of any corporate. Since both corporates are experiencing financial deficit or surplus cash, due to cash mismanagement are faced with many problems, survey deviation from the optimal cash holding levels, Speed of adjustment toward optimal cash holding levels and effective corporate factors on Speed of adjustment are significant and important subject for corporate managers. In this article we tried to emphasize on cash adjustment speed importance in field of finance and dynamic model of cash holding In order to comprehensive explanation of meaning Speed of adjustment of cash and effective corporate factors is discussed. External research studies indicate that corporate factors such as firm size, financial imbalances, free cash flow and corporate governance are impact on Speed of adjustment of cash

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History

  • Receive Date: 18 December 2013
  • Revise Date: 13 June 2018
  • Accept Date: 02 August 2014

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