Abstract

In recent years, there is a lot of attention to keeping the cash in companies in financial literature. This interest has come up from the reality that companies have reported significant amounts of cash on their balance sheet. A company’s social responsibility is one of the most effective factors in social and financial operations and plays a key role in investors' reactions to a company. The main purpose of the present study is to evaluate the social responsibility of companies and their effects on keeping cash through systematic risk index and non-systematic risk and corporate sovereignty. To test the hypothesis, a sample of 91 companies from the accepted ones in the Tehran securities exchange was chosen from 2009 to 2016. The appropriate method to test the hypothesis is to assess the synchronous equation system through (3SLS) minimum of three levels has squares. The results show that social responsibility through idiosyncratic risk is a significant and positive impact on cash holdings. As well as social responsibility through systematic risk has a significant negative impact on cash holdings. The results show social responsibility through corporate governance has a positive significant effect on cash holdings.