1
Associate Professor in Accounting, Shahid Bahonar University of Kerman
2
. M.A. Student in Accounting, Shiraz University
Abstract
Working capital management is one of the determinants of firm value because it will directly affect profitability. The purpose of this research is to investigate the relationship between working capital management and firm value. The data cover the period 1383 to 1390 and sample consists of 101 companies listed on the Tehran Stock Exchange. The method used in this study, is ordinary least squares regression models and panel data method. Tobin's Q ratio was used to measure the firm value. The findings indicate that there is a negative and significant relationship between the Number of day's accounts receivable, Number of days accounts payable, Number of days inventories and cash conversion cycle with firm value. Results, recommend financial managers to pay attention to the components of working capital, reducing the Number of days accounts receivable and Number of days inventories, also increase Number of days accounts payable and make more effort to shorten the cash conversion cycle for to value creation
Khodamipour, A. and Hosseini Nia, S. (2014). Impact of Working Capital Management as a Financial Strategy on Firm Value. New Researches on Accounting, 2(3), 50-60.
MLA
Khodamipour, A. , and Hosseini Nia, S. . "Impact of Working Capital Management as a Financial Strategy on Firm Value", New Researches on Accounting, 2, 3, 2014, 50-60.
HARVARD
Khodamipour, A., Hosseini Nia, S. (2014). 'Impact of Working Capital Management as a Financial Strategy on Firm Value', New Researches on Accounting, 2(3), pp. 50-60.
CHICAGO
A. Khodamipour and S. Hosseini Nia, "Impact of Working Capital Management as a Financial Strategy on Firm Value," New Researches on Accounting, 2 3 (2014): 50-60,
VANCOUVER
Khodamipour, A., Hosseini Nia, S. Impact of Working Capital Management as a Financial Strategy on Firm Value. New Researches on Accounting, 2014; 2(3): 50-60.