Impact of working capital management on profitability ratios: evidence from Iran

Baygi, Seyed Javad Habibzadeh (Department of Accounting, Mashhad Branch, Islamic Azad University of Mashhad)
Javadi, Parisa (Department of Public Financial Management, Mashhad Branch, Islamic Azad University of Mashhad)
Moghaddam, Ali Taghavi (Department of Accounting, Bojnourd Branch, Islamic Azad University)
Ghasemipur, Omid (Department of Accounting, Khorasan Razai, Neyshabur, Science and Research Branch, Islamic Azad University)

Baygi, Seyed Javad Habibzadeh, Javadi, Parisa, Moghaddam, Ali Taghavi, & Ghasemipur, Omid. (2014). Impact of working capital management on profitability ratios: evidence from Iran. 융합경영연구, 2(1), 18-28, https://doi.org/https://doi.org/10.13106/jemm.2014.vol2.no1.18

복사

Abstract

In this research we investigate the effect return on assets, return on equity, profit margin and earnings per share on working capital management. Current ratio and quick ratio used as proxies for working capital management. The research sample includes 451 year -firm of Tehran Stock Exchange (TSE) listed companies for period 2007-10. The multiple linear regressions were applied to test the research hypotheses. The results showed that, return on assets and earnings per share have a negative impact on working capital management. The results also show that earnings per share and profit margin positively associated with the firm performance.

keywords: Working capital management, profitability ratios, current ratio, quick ratio

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Vol.2 No.1

Impact of working capital management on profitability ratios: evidence from Iran

Abstract

융합경영연구