International Journal of Humanities and Social Science

ISSN 2220-8488 (Print), 2221-0989 (Online) 10.30845/ijhss

The Relationship between Working Capital Management and Firm Performance: Evidence from Iran
Zahra Mousavi, Azam Jari

Abstract
Working capital management is one of the most important financial decisions in corporate. The optimum management of working capital will increase the corporate value, so the primary goal of this research is evaluating relationship between working capital management and corporate performance. We used factors such as return on total assets, return on owner’s equity and market value to book value ratio for evaluating corporate performance and net liquidity balance as criterion for evaluating of working capital management .For testing the research hypotheses, financial statements’ data of 56companies accepted in Tehran Stock Exchange has been used and for analyzing and testing hypotheses, one regression model and correlation method is used. Research results show that there are positive relationship between working capital management (NLB) and corporate performance.

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