The Effect of Working Capital Management on the Performance in Tehran Stock Exchange Companies

Document Type : Research Paper

Authors

1 Allameh Tabataba'i University Financial Management

2 Master of financial management, Allameh Tabataba'i University

Abstract

The measurement of corporate efficiency has been always noticed by researchers in the evaluation of performance due to its importance. This paper has investigated the relationship between some of important working capital management policies with firm efficiency. Initially, the  efficiency of the listed companies listed in Tehran Stock Exchange (TSE) in Iran during period (2011-16) was calculated using Data Envelop Analysis (DEA) as one of effective tools by taking Window Analysis approach (length of panel: 2, 3, and 4 years), then the efficiency trend in these firms was examined in terms of increase or decrease of efficiency over the time and finally corporate efficiency was identified as well. Besides, the relationship among working capital management and the efficiency of companies was explored with Generalized Method of Moments-GMM. The findings indicate that average collection period negatively affects efficiency at significant level and while the variables of sale growth and current ratios positively affect the firm efficiency

Keywords

References

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Financial Management Strategy
Volume 6, Issue 4 - Serial Number 23
January 2018
Pages 131-156

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History

  • Receive Date: 28 May 2018
  • Revise Date: 03 November 2018
  • Accept Date: 13 November 2018

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