Journal of Accounting and Management Vision

Journal of Accounting and Management Vision

The effect of accounting information quality on cash retention with emphasis on inflation

Document Type : Original Article

Author
Master of Accounting, Tabriz Branch, Islamic Azad University, Tabriz, Iran.
Abstract
The present study examines the effect of the quality of accounting information on cash holdings with emphasis on inflation. This research is applied in terms of purpose and in terms of methodology of correlation is causal (post-event). The statistical population of the study was the companies listed on the Tehran Stock Exchange and using purposive sampling method, 128 companies were selected as the research sample in an 8-year period between 1392 to 1399. The method used to collect information is a library and the relevant data for measuring variables were collected from Kedal website and companies' financial statements and in Excel preliminary calculations were performed and then Stata software was used to test the research hypotheses. The results show that the quality of accounting information has a significant inverse effect on cash retention. Also, the inflation rate has an inverse effect on the relationship between the quality of accounting information and cash holdings, and the inflation rate intensifies the inverse relationship between the quality of accounting information and cash holdings.
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