TY - JOUR ID - 56246 TI - Inflation, operating cycle, and cash holdings JO - Accounting and Auditing Review JA - ACCTGREV LA - en SN - 2645-8020 AU - Sepasi, Sahar AU - Esmaeili Kejani, Mohammad AU - Safikhani, Reza AD - Assistant Professor in Accounting, Tarbiat Modares University, Tehran, Iran AD - MSc.in Accounting, Tarbiat Modares University, Tehran, Iran AD - MSc. Student in Accounting, Tarbiat Modares University, Tehran, Iran Y1 - 2016 PY - 2016 VL - 22 IS - 4 SP - 441 EP - 460 KW - Cash Holdings KW - inflation and operating cycle DO - 10.22059/acctgrev.2016.56246 N2 - A corporate cash-holding strategy is a trade-off between the costs and benefits of holding cash. At the macro level, firms are inclined to adjust their cash-holding strategies in response to inflation. At the micro level, the operating cycle, which indicates the turnover of corporate cash flow, is an effective corporate cash-holding strategy. This study investigates the effect of inflation and operating cycle on corporate cash holdings. To do so, a sample consisting of 1,264 Firm-year observations was gathered from Tehran Stock Exchange between 1385 and 1392. For hypothesis testing, Almeida, Campello and Weisbach (2004) model was used. The results of the study shows that as the inflation increases, the corporate cash holdings will decrease and when inflation reaches a certain point, the corporate cash holdings will go up as the inflation increases. Moreover, when operating cycle increases, corporate cash holdings decrease but when operating cycle reaches a certain point, the corporate cash holdingsĀ  stand still. UR - https://acctgrev.ut.ac.ir/article_56246.html L1 - https://acctgrev.ut.ac.ir/article_56246_164b6799ea23c9cdb5aa1e16dfd1d0cd.pdf ER -