The effects of working capital management on the profitability of the firms listed in Tehran Stock Exchange
This study investigates the effects of working capital management on the profitability of the firms listed in Tehran Stock Exchange. Withthis regard, variables such as receivables collection period, inventory conversion period, accounts payable payment period, and cash conversion cycle are use...
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| Format: | Article |
| Language: | fas |
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Allameh Tabataba'i University Press
2008-09-01
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| Series: | مطالعات تجربی حسابداری مالی |
| Subjects: | |
| Online Access: | https://qjma.atu.ac.ir/article_4287_1cb27f5d22e257d1076d0c17a5e7a4b3.pdf |
| _version_ | 1797378357971648512 |
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| author | M.H. Setayesh M. Kazemnejad M. zolfaghari |
| author_facet | M.H. Setayesh M. Kazemnejad M. zolfaghari |
| author_sort | M.H. Setayesh |
| collection | DOAJ |
| description | This study investigates the effects of working capital management on the profitability of the firms listed in Tehran Stock Exchange. Withthis regard, variables such as receivables collection period, inventory conversion period, accounts payable payment period, and cash conversion cycle are used for the measurement of working capital management, and Return on Assets (ROA) is used for the measurement of profitability of the firms. Moreover, Sales growth, Leverage, and Size are used as control variables. Using multiple regression and considering the results of investigations of 224 firms in the period from 1382 to 1386, we find that there is a negative significant correlation between receivables collection period, Inventory conversion period, and cash conversion cycle with the profitability of firms listed in Tehran Stock Exchange. No evidence confirming significant correlation between accounts payable payment period and profitability is found. Considering this, the negative significant correlation between profitability and Cash conversion cycle measuring the joint effects of receivables collection period, Inventory conversion period and Accounts payable payment period indicates that firms can increase their profitability and create value for their stockholders by appropriate management of working capital and decreasing Cash conversion cycle logically. |
| first_indexed | 2024-03-08T20:05:43Z |
| format | Article |
| id | doaj.art-058e6dd8cbc940738f376b0e96ca821f |
| institution | Directory Open Access Journal |
| issn | 2821-0166 2538-2519 |
| language | fas |
| last_indexed | 2024-03-08T20:05:43Z |
| publishDate | 2008-09-01 |
| publisher | Allameh Tabataba'i University Press |
| record_format | Article |
| series | مطالعات تجربی حسابداری مالی |
| spelling | doaj.art-058e6dd8cbc940738f376b0e96ca821f2023-12-23T10:33:59ZfasAllameh Tabataba'i University Pressمطالعات تجربی حسابداری مالی2821-01662538-25192008-09-0162343654287The effects of working capital management on the profitability of the firms listed in Tehran Stock ExchangeM.H. Setayesh0M. Kazemnejad1M. zolfaghari2استادیار حسابدرای دانشگاه شیرازدانشجوی کارشناسی ارشد حسابداریدانشجوی کارشناسی ارشد حسابداریThis study investigates the effects of working capital management on the profitability of the firms listed in Tehran Stock Exchange. Withthis regard, variables such as receivables collection period, inventory conversion period, accounts payable payment period, and cash conversion cycle are used for the measurement of working capital management, and Return on Assets (ROA) is used for the measurement of profitability of the firms. Moreover, Sales growth, Leverage, and Size are used as control variables. Using multiple regression and considering the results of investigations of 224 firms in the period from 1382 to 1386, we find that there is a negative significant correlation between receivables collection period, Inventory conversion period, and cash conversion cycle with the profitability of firms listed in Tehran Stock Exchange. No evidence confirming significant correlation between accounts payable payment period and profitability is found. Considering this, the negative significant correlation between profitability and Cash conversion cycle measuring the joint effects of receivables collection period, Inventory conversion period and Accounts payable payment period indicates that firms can increase their profitability and create value for their stockholders by appropriate management of working capital and decreasing Cash conversion cycle logically.https://qjma.atu.ac.ir/article_4287_1cb27f5d22e257d1076d0c17a5e7a4b3.pdfworking capitalworking capital managementcash conversion cycleprofitability |
| spellingShingle | M.H. Setayesh M. Kazemnejad M. zolfaghari The effects of working capital management on the profitability of the firms listed in Tehran Stock Exchange مطالعات تجربی حسابداری مالی working capital working capital management cash conversion cycle profitability |
| title | The effects of working capital management on the profitability of the firms listed in Tehran Stock Exchange |
| title_full | The effects of working capital management on the profitability of the firms listed in Tehran Stock Exchange |
| title_fullStr | The effects of working capital management on the profitability of the firms listed in Tehran Stock Exchange |
| title_full_unstemmed | The effects of working capital management on the profitability of the firms listed in Tehran Stock Exchange |
| title_short | The effects of working capital management on the profitability of the firms listed in Tehran Stock Exchange |
| title_sort | effects of working capital management on the profitability of the firms listed in tehran stock exchange |
| topic | working capital working capital management cash conversion cycle profitability |
| url | https://qjma.atu.ac.ir/article_4287_1cb27f5d22e257d1076d0c17a5e7a4b3.pdf |
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