Journal of Accounting and Management Vision

Journal of Accounting and Management Vision

Investigating the relationship between board independence and cash investment sensitivity with emphasis on the financial viability of listed companies in Tehran Stock Exchange

Document Type : Original Article

Author
alireza zeinali
eslamshahr
Abstract
The purpose of this study is to investigate the relationship between board independence and cash investment sensitivity with emphasis on the financial soundness of listed companies in Tehran Stock Exchange. The statistical sample of this study consists of 130 companies for the period of 2011-2011 and multivariate regression was used to test the research hypotheses. Also, Jark test was used for data mana and the Levine, Lin and Chu test were used for detecting data mana. Also, specialized Excel software was used to process, categorize and prepare variables and enter into Eviews software. Finally, Eviews software was used to estimate the model to refute or accept the research hypothesis. The results showed that there is an inverse relationship between board independence and cash investment sensitivity and financial distress had a negative effect on the relationship between board independence and investment sensitivity with the companies listed in Tehran Stock Exchange.
Keywords
Board independence
cash investment sensitivity
financial helplessness