Journal of Accounting and Management Vision

Journal of Accounting and Management Vision

Investigating the relationship between economic policy uncertainty in supporting investors and the moderating role of excess cash value in companies listed on the Tehran Stock Exchange.

Document Type : Original Article

Authors
reza mohammadi 1
mehdi panhi 1
meghdad mansoori 2
1 Assistant Professor, Department of Accounting, Varamin-Pishva Branch, Islamic Azad University, Pishva, Iran.
2 Master's degree student in Accounting, Varamin-Pishva Branch, Islamic Azad University, Pishva, Iran.
Abstract
In the situation of economic policy uncertainty, many minor executive decisions will be suspended. Under these conditions, it is difficult to gain investor trust. This research was conducted using a quantitative-inductive method and the overall goal was to examine the effect of economic policy uncertainty on investor support; and then to examine the adjusting effect of the company's cash assets. The statistical population included all companies listed on the Tehran Stock Exchange for nine years from 1394 to 1402, which resulted in a total of 1350 observation years. Regression analysis was conducted with Eaves software. At a confidence level above 99 percent, both research hypotheses were confirmed negatively and significantly at a confidence level above 99 percent. The final result is that the lack of economic policy uncertainty increases operational risk and consequently reduces investment attractiveness. Therefore, economic policy certainty has a positive and significant effect on investor support and the value of excess cash affects this relationship. A high value of surplus cash assets increases investor confidence and, in a way, neutralizes concerns arising from economic policy uncertainty. Therefore, a high value of surplus cash assets will strengthen the effect of economic policy certainty on investor protection.
Keywords
Economic policy
investor protection
cash assets
policy certainty

Subjects