The Impact of Financial Constraints and Managerial Entrenchment on the Relationship between Excess Cash Holdings and Investment

This study seeks to examine the impact of financial constraints on the relationship between the management and investment of excess cash held by companies. A total of 90 companies from the companies listed in Tehran Stock Exchange In the period of 1384 to 1391 were selected for the study after some filtration. The results show that changes in excess cash holdings influence capital expenditure of companies have no financial constraints and the impact it has on companies with fewer financial constraints. Other results concerning the effect of board structure and the influence being strong or weak on spending on capital expenditure, showed that the structure of the Board had a significant positive impact on the company so that it can be said that the strengthening the board structure, led to an increase in the amount invested in the companies in question.