Mohammad Imani Barandagh - Department of Accounting, Urmia University, Urmia, Iran
Ahmad Bahrami - Department of Accounting, Tabriz Branch, Islamic Azad University, Tabriz, Iran
Mohammadreza Abbasi Astamal - Department of Accounting, Varzeghan Branch, Islamic Azad University, Varzeghan, Iran

The present study undertakes to examine effects of weighted average cost of capital (WACC) on cash holding in companies listed at Tehran stock exchange in a period of 8 years from 2004 to 2011. The study takes WACC as independent variable, while having cash flow from operation, firm size and sales growth as control variables. Here, dependent variable (cash) is measured using Opler&Ozkan model. A library method is utilized for collecting data. The hypotheses are tested by a multivariate regression model. Results of study, based on Opler&Ozkan model, indicate that weighted average cost of capital has no effect on cash holding in companies listed at Tehran stock exchange.

Cost of capital ,Cash Holding, Opler& Ozkan model