خلاصة:
This study aims at exploring relationship between Working Capital Management with criterions for value-based performance. Therefore, the information of 107 companies listed in Tehran Stock Exchange between 2007-2011 (1386-1390) was studied and the effect of various variables for Working Capital Management (including Days Sales Outstanding, Days Sales of Inventory, Days Payable Outstanding, and Cash ConversionCycle) on criterions for value-based performance (including Economic Value-Added (EVA), Market Value-Added (MVA), and Q Tobin index) was tested through employing 3 hypotheses and 9 sub-hypotheses all along with the main research question.Test of hypothesis was carried out by multiple regression analysis byEstimatedgeneralized least square (EGLS). Findings of the study show that the increase of Days Sales Outstanding results in the increase of both Economic Value-Added (EVA) and Market Value-Added (MVA), and the increase of Days Sales of Inventory also results in the decrease of criterion for value-based performance of both Economic Value-Added (EVA) and Market Value-Added (MVA).
ملخص الجهاز:
The relationship between working capital management and criterions for value-based performance of the companies listed in Tehran Stock Exchange Fatemeh Sousaraie1 and Hosein Didehkhani2* 1.
Therefore, the information of 107 companies listed in Tehran Stock Exchange between 2007-2011 (1386-1390) was studied and the effect of various variables for Working Capital Management (including Days Sales Outstanding, Days Sales of Inventory, Days Payable Outstanding, and Cash ConversionCycle) on criterions for value-based performance (including Economic Value-Added (EVA), Market Value-Added (MVA), and Q Tobin index) was tested through employing 3 hypotheses and 9 sub-hypotheses all along with the main research question.
For example, with decreasing the period of receiving the receivable accounts, will decrease WCR and NLB as cash in value will increase A company can perform short term warranties on time if it has the high amount of working capital; this subject redound to increase capacity of receivable loan in company and to decrease in the risk of non-payment of the debts, so efficiency in working capital management affects on short term financial performance(profitability) as well as long term performance( maximum firm value).
Rajesh and Redy (2011) studied the relationship between working capital management and companies profitability in Hendoostan Stock Exchange for a period of 2000-2009.
To address the research question, we intended to test the relationship between working capital management with corporate performance.
These Results indicate that there is significant relationship between corporate performance and components of working capital (net liquidity balance).