The Amount of Excess Cash Holdings and Their Influence on Abnormal Returns in IPO's in Tehran Stock Exchange

This study investigates the extent of surplus cash holdings and their influence on abnormal returns in initial public offerings of stock in Tehran Stock Exchange. The 101 companies during the period 2003 to 2012 were selected. Selective approach to testing hypotheses, examining cross-sectional data Regression testing analysis and compared statistically independent samples was used to test hypotheses. The results show that the retention surplus cash holdings by firms and abnormal returns in initial public offerings of stock, the general relationship in between. In general, there is no significant relationship. But tests determined that for each year of the procedure, it was determined for each year. During the 2005 years (significant negative association) and 2009 years (significant positive relationship), there also was the stability of the cash surplus items stored during some years now have changed and so we can say is unsustainable. Given the similarity of the average abnormal returns varied over the study period, one can say that the variable of interest over the years has remained stable. During the years of said, the variable of interest has remained stable