Hamedan, Iran. Malayer, Iran. Corresponding Author. faculty, Malayer, Iran

Transcription

1 STUDYING THE IMPACT OF OVERINVESTMENT ON INVESTORS'' REACTION TO THE MAINTAINED AMOUNT OF CASH IN THE COMPANIES ACCEPTED IN THE SECURITIES STOCK MARKET OF TEHRAN Shahnaz Ahmadvand Darush Javid 2 Hosein Soleimani 3 M.a suden of accouning Deparmen of Accouning Malayer Branch/Islamic AzadUniversiy Hamedan Iran 2 Assisan professor in Accouning Islamic Azad Universiy MalayerBranch Accouning faculy Malayer Iran. Corresponding Auhor 3 Assisan professor in saisics and mahemaics Islamic Azad Universiy Malayer mahemaics faculy Malayer Iran Absrac The aim of he presen sudy is sudying he impac of overinvesmen on he invesors' reacion o he mainained amoun of cash in he companies acceped in he sock marke of securiies of Tehran. In his sudy he levels of invesmen and is componens (overinvesmen and underinvesmen) were seleced as independen variables and he final value of he cash amoun was seleced as a dependen variable. For carrying ou his sudy wo main hypohesises were designed and presened and he daa relaed o 4 companies acceped by he sock marke during was used as sample companies. The resuls of he analysis of he firs hypohesis showed ha here is a negaive and significan relaionship beween he levels of invesmen and he final value of he cash amoun. In oher words by increase in invesmen levels he final value of he cash amoun will decrease. The resuls of he second hypohesis showed ha he final value of he cash amoun in companies wihou overinvesmen is higher han in companies wih overinvesmen. Key words: overinvesmen underinvesmen he final value of he cash amoun Foreword Today he growh and developmen of companies and he separaion of ownership and managemen has changed he agencies o one of he main concerns of invesors. The conrass beween he managers and owners' ineress and he daa asymmery beween he wo groups can be regarded as he wo key facors in he emergence of agency issues. Based on he concep of he daa asymmery regarding he cash flows he invesmen opporuniies and generally he fuure perspecive and real value of he company managers have more informaion comparing he ouer-organizaion invesors. Myers and Majlouf (984) believe ha he lesser informaion of invesors comparing managers regarding he real value of he company may resul in he wrong pricing of he socks of he company. In case he company is obliged o provide is financial sources by means of disribuion of socks i migh be possible ha he lower pricing compared o he real marke be so high ha new invesors gain a value more han he curren ne value of he projec and hus he curren sockholders ge confroned wih loss. Thus in such condiions he company is obliged o overlook he invesmen projecs having he curren posiive ne value or fulfill he financial sources of hese projecs hrough is inner sources and in case of insufficiency of inner sources provide he required financial sources by means of he securiies which he possibiliy of heir lower pricing compared o he real marke is lower (e.g. bonds) in order o avoid he rejecion of valuable invesmen opporuniies. Liquidiy shows he company's capabiliy in doing shor erm 278

2 commimens. In oher words he company's liquidiy implies he relaionship beween he cash amoun ha will be a he hands of he company in a shor erm period and he cash amoun ha company will need. The main represenaion of he company's liquidiy is is curren belongings. There are forces for decreasing he liquidiy (amoun of curren debs) which are imporan in calculaion of he liquidiy amoun. Companies need cash amouns for heir requiremens and he amoun of his cash is dependen on he level of he company's requiremens. Under such condiions companies need o mainain an accepable level of cash amouns. In case his mainaining level is no consisen wih he required and expeced amoun for he company he managemen will have o seek financial sources for keeping is projecs and skeches which will impose oher coss such as ineres coss o he company and he consequences of he growh of he ineres rae will be decline of companies' profiabiliy and decrease of oucomes which can ulimaely bring in he increase in invesmen coss. From he oher hand mainaining exra levels higher han he requiremens of he company may cause he company o go under he burden of wased opporuniies i means ha by no using he cash amoun for making new invesmens he company would lose profiable opporuniies and his can again cause he company's decreased profiabiliy which his ime has been caused by losing he new opporuniies. Thus mainaining an accepable and economic level of cash amoun is one of he effecive facors for he company's profiabiliy and can maximize he sockholders' wealh; oherwise i can cause mismanagemen of he company and ulimaely bring loss for he sockholders. By invesing in differen projecs managers also ry o provide he profiabiliy and he fuure cash flow of he company oo. Therefore someimes managers proceed o making exra invesmens in he company ha lead o issues such as he decrease of he mainained cash amoun and hus can resul in he emergence of he issue of agency oo. Theoreical framework of he sudy The relaionship beween a financial reporer and invesmen funcionaliy (Balanced diagram of 2006 inpu daa) The above diagram has been balanced according o researcher's inake from he heoreical foundaions exising in he oher sources Resuls The wrong decisions of he managers in choosing loss-bringing or risky projecs will cause overinvesmen or underinvesmen and may confron he owners' and loan-givers' ineress wih some issues He found ha he relaionship beween he qualiy of financial reporage and overinvesmen is very powerful for companies having more remaining of cash amoun and scaered invesors Companies ha have higher qualiy of accouning benefi from a beer reurn of invesmen and higher oucome in heir invesmens and his fac (higher qualiy of accouning) also can increase he funcionaliy of invesmen in invesing possessions Subjec Sudying he problems causing he underinvesmen And overinvesmen The relaionship beween he qualiy of financial reporage and invesmen funcionaliy How he qualiy of financial accouning may increase he funcionaliy of invesmen Researcher Roka e al (200) Verdi (2006) Bidel Hilardi (2006) & No

3 in an average way Their findings showed ha he posiive or negaive correlaion of he qualiy of financial reporage and invesmen is higher in companies which heir operaional surroundings is prone o less invesmen or overinvesmen also he companies wih higher qualiy of financial reporage had lesser deviaions from heir expeced invesmens and invesing budgeing and showed less sensiiviy owards financial condiions (a he level of company no a level of major economy) in his regard. In companies wih lower qualiies of ineres he rae of shares' oucome and he raes of he oucomes of possessions are lower and invesmen in heir invesing possessions shows lower sensiiviy considering he inside cash flows. Companies wih high qualiy of financial reporage experience decrease of daa asymmery. This fac can cause he decrease of reverse selecion and may ulimaely lead o decrease in mainenance of cash amoun a he company How he qualiy of financial reporage is relaed o he funcionaliy of invesmen? The relaionship beween he qualiy of ineres and invesmen in invesing possessions The impac of financial reporage on mainenance of cash amoun Bidel Hilardi & Hardi (2008) Kovinoviky (2009) Solan & Travel (2007) A summary of he sudies done overseas A summary of he sudies done a home Resuls The qualiy of financial reporage has a negaive and significan relaion wih cash and cash equivalens his research also showed ha based on he model of use for he purpose of invesmen funcionaliy here is a negaive and significan relaion beween he over (under)invesmen and he qualiy of financial reporage. Therefore he resuls of his research show ha he qualiy of financial reporage can promoe he funcionaliy of invesmen hrough over (under) invesmens. The qualiy of financial reporage has a posiive and significan relaion wih he level of invesmen funcionaliy he qualiy of financial reporage improves he invesmen funcionaliy. This research also showed ha based on he model of use for he purpose of invesmen funcionaliy here is a negaive and significan relaion beween he under (over) invesmen and qualiy of he financial reporage. Therefore he research implies ha he qualiy of financial reporage may improve he invesmen funcionaliy by over (under) invesmen. subjec The impac of he qualiy of he commiing iems on he amoun of he mainained cash amoun Sudying he relaionship beween financial reporage and invesmen funcionaliy researcher Fakhar Taghavi (2009) Modares & Hesar Zadeh (2008) No

4 There is a posiive and significan relaion beween he cash ineres variable and he accumulaed unnormal oucome of shares around he proclaiming dae of ineress which shows he here is a consisency beween he changing of cash ineres and he accumulaed un-normal oucome of shares and when he cash ineres of companies has an increase or decrease he un-normal oucome of he accumulaed shares will also aler researchers also found ha here is a posiive and significan relaion beween ineres changes and he un-normal oucome of he accumulaed shares. Explaining he relaionship beween he qualiy of ineres and he marke reacion o changes in cash ineress Safaghi & Kordesani 3 Hypohesises of he research Based on he heoreical foundaions menioned he aim of he presen sudy is o sudy he impac of over (under) invesmen on he invesors' reacion o he mainained cash amoun of he company and o respond o he quesions ha wheher he value of cash amoun in he companies wih overinvesmen is lower han hose wihou overinvesmen? Wheher he final value of he cash amoun has a reverse relaion wih overinvesmen or no? In order o reach o his aim he following wo hypohesises will be sudied: ) he value of he cash amoun in companies wih overinvesmen is lower han hose companies wihou overinvesmen. 2) he final value of he cash amoun has a negaive relaionship wih overinvesmen Mehod The saisical sociey of his research consiss of all he companies acceped in he sock marke securiies of Tehran which have been acive in he marke since 2007 unil 202. In order o selec a proper saisical sample being represenaive for he saisical sociey of he sudy he crieria-filering echnique was used. Afer conemplaing on all he crieria 4 companies were seleced as he sample herefore he number of observaions reached o 684 companies per year. This is a correlaional research and for obaining he indices of variables and he model significance regression analysis and variance analysis were used respecively. The Wason camera es for self-correlaion and he Smirnoff- calmogroph es for he daa normaiviy were used. In order o deermine wheher each raio was significan in he regression analysis or no he T es and for he oal analysis of he daa he saisical sofware EVIEWS8 was used. The daa for he research were generally prepared and compiled from he daa-banks of he sof wares Tadbir Pardaz & Rahavard Novin daa porals of he sock marke organizaion of Tehran daa porals of he research developmen and Islamic sudies managemen and also he repors issued by sock marke and he financial invenories of companies. Research variables Independen variable (overinvesmen and underinvesmen) Dependen variable (he mainained cash amoun) 28

5 Ineres prior o unexpeced Ineres raes Cash amouns Toal debs Operaional cash amoun flow Company's marke value Final value of cash amoun Invesmen in new projecs Models of research Model V E o drd 8 dl 5 Model 2 MV I 9 de 2 i. 0 de di 3 di dna 4 dv 2 dna 5 dl 3 RD 6 dl 4 drd 0 I New CFi NWCi CEi Levi RDi D dummy i _ MV dv i dl * L V ()=The marke value of he company plus he official value of he debs which will be divided ino oal possessions for de-scaling and is calculaed as following: V i Marke Value Book ToalAsse Value s of Deb de()=change in ineres prior o he unexpeced iems which is divided ino oal assess 282

6 E ()=Ineres prior o he unexpeced iems which will be divided ino oal asses for de-scaling purpose. dna ()=changes in non-cash asses hese asses are obained hrough subracion of he oal asses from he cash possessions. In order for de-scaling i is divided ino he oal of asses. RD ()= he research and developmen coss divided ino he oal of possessions he noes of he financial repors are exracable. drd ()= changes in he coss of research and developmen I ()= calculaed hrough he division of ineres coss o he oal possessions di= changes in he coss relaed o ineress L()= he cash possessions of he company which consis of he cash amouns and shor erm invesmens dl()= changes in he cash possessions of he company which is calculaed hrough subracion of he curren cash amouns from he cash possessions of he previous year. I (oal)= he oal amoun of company's invesmen which is divided o wo pars according o he following model: Model 3 I (oal)= I (mainenance) + I (new) I (mainenance)= invesmens for repairing and mainenance of he belongings I (new)= coss of he new schemes and projecs which consiss of he coss of researches and developmens or he noing of oher possessions or purchasing of new possessions and is divided o wo pars as he following: I (new )= I (new )* + I (new ) I (new)*= he expeced invesmen amoun and is calculaed by he mean of he previous hree years. I (new)= he unexpeced invesmen amoun which is calculaed by he remaining sum of he 5 h model. Posiive amoun shows overinvesmen while negaive amoun reveals an underinvesmen. Model 5 I New GO Levi Cashi I New Sizei R i GO= a crierion of growh opporuniies which is calculaed by he relaion of he marke value o he official value of he righs of shareholders. Lev= oal debs divided by oal asses Lev= oal deb/oal asses Cash= oal amouns of cash asses including cash amouns and shor erm invesmens divided by oal asses. Size= he proporion of he company which is calculaed by he company's sales logarihm. R ()= oucomes of he company for a financial period which is calculaed as following. 283

7 MV=he final value of he mainenance cash amoun of he company. This variable in fac implies how much of he company's value is added or subraced per every Rial change in he cash amoun. CF ()= he operaional cash amoun flow divided by oal asses. NWC= he ne value of he company's circulaing capial which is divided o he oal asses of he company. CE ()= invesmen coss divided by oal asses. RD ()= coss of research or developmen which will be divided o oal asses. D_dummy= a virual variable which equals if he company has proceeded o dividing he ineress wihin he las previous year oherwise i equals 0. Analysis of he daa Descripive saisics In his par he informaion regarding he calculaed variables of he sudy is presened hese variables include he dependen and independen variables and he daa considering he mean midpoin sandard deviaion and srechiness of hese variables during he course of he sudy is presened in he following able. Table. descripive saisics of he dependen variable of he sudy srechiness 5/833 2/04 7/75 sd 3/534 0/434 -/7 midpoin /255 0/339 0/09 Mean /72 0/3495 0/03 Observaion Variables Marke value Final value of cash amoun Invesmen for new projecs The above able. Relaes o he descripive saisics of he dependen variables of he sudy. This able shows ha he marke value of he company's asses in regards o he oal asses has a mean of approximaely.6 which indicaes ha he marke value of he company is.7 imes bigger han he official value of he oal asses of he company. The marke value variable has a lower midpoin comparing he mean and implies a righ-forwarded disribuion for his variable. Since he normal deviaion amoun is 0 and normal variance is 3 hese wo indices show ha he disribuion of his variable is noiceably differen from ha of a normal disribuion. The final value of he cash amoun has a mean of roughly abou which shows ha percen in he company's marke value will increase per every percen increase in he cash amoun. The amoun of he variance of his variable shows ha i has a considerable difference wih a normal disribuion however is sandard deviaion has a iny difference wih a normal disribuion. The dependen variable of invesmen for new projecs which is obained by division ino he oal asses also shows ha companies spend abou 4% of heir oal asses per year on invesing on he new projecs and research or developmen. The disribuion of his variable is also differen from ha of a normal disribuion. Table 2. descripive saisics of he independen variables 284

8 Srechiness Sd Midpoin Mean Observaions Variables /266 4/248 /572 0/789 0/462 /56 0/33 0/002 0/026 0/7 0/004 0/03 Ineres prior o unexpeced iems Coss of research and developemen Ineres raes 8/00 2/54 0/039 0/069 Cash asses 4/62 0/9 0/6826 0/68 Toal deb /076-0/33 0/057 0/048 Operaional cash flow The above variables shown in able 2-4 are a selecion of he independen variables of he sudy which have been menioned above. Ineres prior o unexpeced iems which is divided o oal asses for he purpose of co-scaling consiss in overall 7% of he company's oal asses. This raion in fac reveals ha in average sock marke companies had an ineres of prior o unexpeced iems of 7% of he oal asses hrough he period of he sudy. This variable's disribuion is close o ha of a normal disribuion. The variable of he coss of research and developmen divided by he oal asses shows ha in average companies have spen of he oal asses of one company for he purposes of research and developmen which can be considered a small amoun his in fac shows ha he managemen's aiude is mosly owards gaining ineress in shor erms and is no much inclined o he research or exension of he range of producs. Ineres raes also show ha up o 3% of he oal asses of he company relae o he coss of ineress and in average companies pay 3% of heir oal asses as ineres coss. The disribuion of his variable is close o a normal disribuion. According o he above able he cash asses of he company indicae ha companies in average mainain 7% of heir asses in he form of cash amouns for shor erm invesmens. The nex raion indicaes ha he companies' deb amoun is roughly abou 68% which reveals ha abou 32% of he company's asses are provided from he shareholders' income and he res is obained hrough he crediors. The disribuion of his variable is also a bi differen from normal disribuion. The operaional cash amoun variable also indicaes ha abou 4.5% of he company's oal asses ener he company in he form of operaional cash amoun. Inducive saisics: in his par he analysis of he daa by he inducive saisics is presened. The analysis of he daa in his secion is done by Panel mehod. Firsly i is deermined by he Chaw es wheher he mehod of Panel wih effecs should be used or he Panel wihou effecs and in order o es he Panel mehod and deermine wheher he sable effecs mehod should be employed or he random effecs es Husman es was used. 285

9 Table 3. Chaw es for deermining he use of a Panel or mix mehod P-Value 0/000 0/000 Degree of freedom (93/456) 4 raio 0/ / Tes score F Q 2 es Chaw es Husman es The resuls of he chaw es for model are shown in able 3-4. Considering he fac ha he calculaed F of he chaw es (0.94) is higher han he criical amoun of F he H0 hypohesis will be herefore rejeced and he daa of he Panel mehod could be used by 95% cerainy. Since i is now clear ha he Panel mehod should be used i is now necessary o deermine which specific Panel should be employed. In order o es he use of Panel mehod wih sable effecs and random effecs he Husman es will be used. Based on he above able i is clear ha since he level of significance is lower han 5% he Panel mehod of sable effecs should be used. Regarding he fac ha in he able 5-4 he model has inconsisency of variance herefore insead of he normal minimum squares mehod he generalized squares mehod (GLS) will be used for solving he problem of inconsisency in variance. Firs in order o find ou he final value of he cash amoun model should be made fi of goodness and is raios should be obained he following able shows hese resuls: V dl o drd E 8 5 I 9 de 2 i. 0 de di 3 di dna 4 2 dv dna 5 3 dl RD 6 4 dl drd 7 * L Table 4. Panel wih sable effecs Level of significance 0/000 0/3286 0/0527 0/3323 0/2849 0/000 0/0492 0/8702 0/998 0/9825 0/9309 0/0273 0/0574 0/0447 T amoun 5/42 0/ / / / /82223 / / / / / /24802 / /02839 Raio / / / / / / / /266-0/ / / / / /3850 Descripion Widh from norm Ineres prior o unexpeced iems Changes in ineres prior o unexpeced iems Changes in ineres prior o unexpeced iems in fuure Changes in curren non-cash asses Changes in fuure non-cash asses Coss of research and developmen Coss of curren researches or developmens Coss of fuure researches or developmens Ineres coss Changes in curren ineres coss Changes in fuure ineres coss Changes in fuure marke value Changes in cash asses 286

10 0/678 0/2248 0/ / /6408 0/67542 Changes in cash asses* debs Changes in fuure cash asses Table 5. summary of ess Smironoff-klomogroph 0/23 Wason camera 2/5847 Pagan cu es 0/0000 R 0/ F es 3/2627 Considering he F saisical amoun i can be inferred ha he model is significan. The R=0.75 shows ha 75% of changes in he dependen variable are explained by he independen variables. In order for measuring he validiy of he model and invesigaing he classic regression supposiions some ess needed o be done. The following ess have been done in he presen sudy. ) in order o make sure of he non-correlaiviy of unsaed variances during various sages which is one of he supposiions of analysis of regression and is called auo correlaion he Wason camera es was used. This raio is beween 0 and 4 an amoun under 2 indicaes a posiive correlaion beween he unsaed variances and an amoun above 2 shows ha he error componens have differen values and no correlaion exiss. In his hypohesis also he amoun of Wason es is more han 2 (2.58) and shows he non-exisence of he issue of auo correlaion. 2) he phenomenon of homogeneiy of variances meaning he errors' variance is sable. (Brooks 2008). In case variances are heerogeneous he esimaor would no be linear or non-skewed and won' have he leas variance. In order o sudy he homogeneiy of variances he Pagan cu es was used. According o he level of significance (0.000) resuls show ha he null hypohesis implying lack of heerogeneous variance will be rejeced. I means he model suffers from variance heerogeneiy. Therefore o solve he problem he generalized minimum squares was used. 3) in order o es he normaiviy of he residual phrases which is one of he classic regression supposiions Smirnoff Calmogroph es was used he resuls of which show ha is level of significance is 0.23 and he null hypohesis based on he normaiviy of he residual phrases will no be rejeced hus he residual phrases have a normal disribuion. The resuls of he above able show ha he final value of cash amoun from he invesors' poin of view is posiive and for every Rial increase in he invesors' and shareholders' cash amoun he company will have Rials increase of value and his raio is significan. The raio of change variable in he profi prior o unexpeced iems shows ha per every % change in profis 0.44 change will occur in he marke value meaning ha per every % increase in he profi prior o unexpeced iems 0.44% increase will occur in he company's value. The raio of he variable of research and developmen also shows ha per every % increase or decrease in his variable 23% changes will occur in he company's value. This fac reveals he srong aachmen of he companies' income and profis on he research and growh or developmen coss. Ineres raes also show a negaive relaion wih he companies' income and profis. Ineres raes also show a negaive relaion wih he company's value and wih he increase of ineres raes he company's value would decrease and per every % increase of ineres raes 0.3 of he value of he company will decrease. Moreover he change variable in he marke value has a posiive relaion wih he marke value and shows ha changes in he marke value have a posiive relaionship wih he marke value. The res of he variables of he above model were no saisically significan and hus were no inerpreable. 287

11 3-4 hypohesis esing For esing he research hypohesises he unexpeced amouns of invesmen should be firs obained which would be done based on he goodness of fi of model 5. The remaining componens or he error amoun will be considered as he unexpeced invesmen. In fac he invesmen amoun is no esimaed by he model and his is he invesmen amoun ha reveals o be unexpeced ha in case of being posiive shows overinvesmen and oherwise underinvesmen. Below he resuls of he goodness of fi model are shown. I should be noed ha he raios of his model are no used for hypohesis esing. Table 6. Panel wihou effecs Level of significance 0/0000 0/009 0/ /3474 0/0002 0/0000 T amoun 4/ /686-0/ / / / / Raio 0/ /7205-0/ / / / / Descripion Widh from norm Company's growh oppuruniies Company's deb Company's cash amoun Company's invesmen Size of he company Company's las year oupu Table 7. Summary of he ess Wason camera es 2/30094 R 0/54669 F es 4/97097 Afer he esimaion of he above model and he resuls obained for he error componen of he model model 2. of he research will be esimaed which is shown in he following able. Tesing he second hypohesis MV 0 INew CFi NWCi CEi Levi RDi D dummy i _ Table 8. Chaw es for deermining he use of Panel or Mixed mehods P-Value 0/0038 0/0000 Degree of freedom (93/463) 7 Amoun of es / / Tes score F Q 2 Kind of es used Chaw es Husman es 288

12 The resuls of he Chaw es for he second model are presened in able 8-4. Considering he fac ha he F amoun by Chaw (.5003) is higher han he criical F he H0 hypohesis would hen be rejeced and he Panel daa mehod can be used wih 95% cerainy. Since i was deermined ha he Panel mehod could be used in order o find ou wheher o use he Panel wih sable effecs or random effecs Husman es will be performed. Based on he above able i is clear ha since he level of significance is lower han 5% he Panel mehod wih sable effecs should be used. Since based on able 0-4 he model has an inconsisency of variance insead of using he minimum of normal squares he GLS mehod should be used in order o solve he problem of variance inconsisency. Table 9. Panel wih sable effecs Level of significance T amoun Raio Descripion 0/0000 7/ /35798 Widh from norm 0/0000-4/ /22040 Unexpeced invesmens 0/363 0/ / Cash amoun flow 0/259 -/4785-0/0362 Ne capial in circulaion 0/0488 -/ /0573 Capial coss 0/5780 0/ /08553 Deb raio 0/0000 0/5507 0/ / /00267 Coss of research and developmen Virual variable of ineres division Table 0. summary of ess Smirnoff calmogroph 0/342 Wason camera es 2/22245 Pagan es 0/000 cu R 0/3935 F es 2/797 According o F i can be inferred ha he model is significan. And he R amoun of 0.39 shows ha 32% of changes in he dependen variable could be explained by independen variables of he sudy. For measuring he validiy of he model and invesigaing he supposiions of he classic regression ess need o be done. The following ess have been done for his research. 289

13 4) for esing he non-correlaion feaure of unsaed variances a differen sages which is one of he supposiions of regression analysis and is called auo correlaion he Wason camera es was done. The amoun of his es is beween 0 and 4 which if less han 2 shows a posiive correlaion beween unsaed variances and if he amoun is higher han 2 i will indicae ha he error componens have differen values and no correlaion exiss. In his hypohesis as well he amoun of Wason es is higher han 2 (2.22) and shows nonexisence of he issue of correlaion. 5) he phenomenon of he homogeneiy of variances means ha he error variances is he same (Brooks 2008). In case variances are non-homogeneous he esimaor will no be linear or nonskewed and won' have he leas variance. For invesigaing he homogeneiy of variances Pagan cu es was used. Considering he level of significance (0.000) resuls show ha he null hypohesis implying he non-exisence of heerogeneous variance will be rejeced and he model will have he issue of variance heerogeneiy. Therefore he minimum generalized squares mehod was employed (able 0-4). 6) for esing he normaiviy of he residual phrases as one of he supposiions of classic regression Smirnoff Calmogroph es was used. The resuls of his es show ha he level of significance is (0.342) and he null hypohesis based on he normaiviy of he residual phrases will no be rejeced and he residual phrases have a normal disribuion. (able 0-4). The resuls of able 9-4 show ha he indices of he variables of unexpeced invesmen (overinvesmen or underinvesmen) he capial expenses and coss of research and developmen are found o be significan variables in he model and he indices of hese variables are saisically significan. The raio of he variable of invesmen have a negaive relaion wih he final value of cash amoun and is 0.2 i means ha per % increase of he amoun of invesmen he final value of cash amoun will decrease by 0.2% which shows ha he second hypohesis based on he presence of a negaive relaionship beween he final value of cash amoun and overinvesmen is confirmed. H H 0 : 0 : 0 The capial expenses oo have a negaive relaion wih he final value of cash amoun. Moreover he coss of research and developmen have a direc relaion wih he final value of cash amoun and he res of he variables don' have any saisical significance. 4-4 esing of hypohesis Table -4 sudying he final value of cash amoun in companies wih and wihou overinvesmen H H 0 : MV o : MV o MV u MV u 290

14 confirmed Raios of levels of invesmen The above able shows ha he firs hypohesis is confirmed. Summary of he resuls of he firs hypohesis of he sudy Summary of he resuls of he second hypohesis of he sudy Rejecion or confirmaion of he hypohesis confirmed Welch es Seroi-Welch es T es 0.04 Mean of nonoverinvesmen Mean overinvesmen of Conclusion The resuls of he analysis of he firs main hypohesis in able 4-9 show ha he indices of he invesmen levels are negaive and wih increase of invesmen he dependen variable of he sudy (final value of cash amoun) will decrease. This fac shows ha in companies ha have overinvesmen policies he final value of cash amoun will decrease and in companies wih underinvesmen policies he final value of cash amoun will increase. Such a reacion on behalf of invesors can be due o daa asymmery and shows ha heir reacion o he changes in cash amouns are no based on he profiabiliy of invesmens or he growh rae of companies in fuure bu are merely made according o he financial limis of he company which occur due o overinvesmens. Posiive changes in hese companies are under-evaluaed and heir reacions are no proper which is called less han real reacion. Therefore he value of he companies canno be appropriaely evaluaed in such companies; his fac may lead o he opporuniy of arbirage in he marke which can bring an un-normal profiabiliy for some groups. In oher words he company will be mispriced. The resuls found from he analysis of he second hypohesis in able - 4 show ha his hypohesis is confirmed meaning ha he final value of cash amouns in companies wihou overinvesmen has a significan difference from ha of he companies wih overinvesmen. As able -4 reveals he mean of he companies wih overinvesmen is and shows ha per % changes in he cash amouns of hese companies 0.329% of he value of he company will change. However he final value of companies wihou overinvesmen shows ha he average of he final value of such companies is which is higher comparing o he companies wih overinvesmen. The resuls of he esing of he means of he wo socieies indicae ha he difference beween hese wo means is saisically significan. The Seroi-Welch and Welch ess 29

15 which are based on he homogeneiy of variances of 2 groups and he heerogeneiy of variances also indicae ha here is a significan difference beween he means of he 2 groups and he final value of cash amoun in companies wihou overinvesmen is higher. Persian references. Azar A & Mansoor Momeny 996 "saisics and is applicaion in managemen" firs volume firs ediion Tehran sam 2. Tehran R & Reza Hesar Zadeh 2009 "he impac of free cash flows in financial sponsoring on overinvesmen and underinvesmen" accouning sudies h ediion no Khak Gh 999 "research mehods wih an approach of disseraion wriing" publicaion of he naional research cener 4. Chris B ranslaed by Ahmad Badry & Abdolmajid Abdolbagh 200 "an inroducion o economic measuremen" nas pub 5. Momeny Mansoor 2007 "saisical analyses by spss" Keabe No pub 6. Modares Hesar Zadeh 2008 "he qualiy of financial reporage and invesmen efficiency" quarerly of sock marke h year no Hendrikson I & Brada Michael F ranslaed by Ali Parsian 2006 "accouning heories" Termeh publicaion 292