The purpose of this research is to study the effective factors on cash holdings in private and state companies quoted in Tehran stock exchange. Time period of this research is 2007-2012, and a number of 134 companies (85 private companies and 49 state companies) were chosen as sample. To analyze and test the research hypothesiss in pooled/plan mode, t test and multi-variable regression models have been used. Research findings indicate that there is a significant difference between the level of cash holdings in private companies and state companies, and that cash flow and net working capital explain the difference between the level of cash holdings in private companies and state companies, and capital expenditures explain the difference between the change in chash holdings in mentioned companies. It means that by increasing the cash flow and net working capital in state companies, the level of cash holdings increases, and also by increasing the cash flow and decreasing the capital expendituresm the change in cash holdings increases significantly.

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