Assessing the Relationship between Ownership Structure, Corporate Cash Holdings and Stock Prices on Tehran Stock Exchange

The present study aims to assess the relationship between ownership structure, corporate cash holdings and stock prices. It is an analytical research which applied panel data analysis and desk approaches, and investigated cause and effect relations. 112 listed companies on Tehran Stock Exchange were examined in this research over a period, extending from 2007 to 2012 (672 firm-years). The obtained findings of first hypothesis testing indicated a direct significant relationship between institutional ownership and corporate stock prices. Testing the second hypothesis proved a direct significant relationship between management ownership and stock prices. Third hypothesis was rejected and no significant relationship association was observed between private ownership and stock prices. Finally, fourth hypothesis testing showed a direct significant relationship between corporate liquidity and stock prices.