A company's cash is one of the most important negotiable assets of any company. Managers of companies in different economic conditions make different decisions about the company's cash assets. They may decide to increase cash reserves, distribute cash among shareholders, use cash resources for the company's internal affairs, use it for foreign study or accumulate cash reserves, which in any case affects the level of cash accumulation of the company, as well as the phenomenon of overvaluation., Destroys the value of the company and deprives the company of credit for honesty and truthfulness, the credit that is necessary for the success of a company. Therefore, the purpose of this study is to investigate whether incorrect stock valuation has an effect on the cash retention of companies listed on the Tehran Stock Exchange? The statistical population of the study is all companies listed on the Tehran Stock Exchange between 1390 and 1399. After applying the restrictions, 125 companies were selected as the sample of the study.
Keywords: incorrect stock valuation, cash hold, company performance.