Since the political power ring is not clearly separable from the economic power ring, and the government's political support affects the economic role-making of companies, this study seeks to explore the effect of the political support of the government on the company's cash holding level. In addition, the intervening effect of the agency cost was examined. Political support means extensive relationship with companies and government. Maintaining extensive relationship with government over time leads to satisfaction and political support of the government. The time period of the research is during the years 2003-2012 .The sample consists of 98 companies. The research method is correlational. The "Least squares method" was used in order to test the hypotheses. The results suggest that there is a negative and significant relationship between political support and cash holding level .Furthermore, the effect of political support on the cash holding increases with the rise in agency cost and the negative relationship between political support for companies and cash holding is affected by high agency cost.