ARTÍCULO
TITULO

Factors Determining the Relation between Firm Expenditure and Working Capital Management in Firms Listed in Tehran Stock Exchange

Parvin Moradi Dehcheraghi    
Farshid Kheirollahi    

Resumen

Currently firms? liquidity status is in undesirable condition and due to inflation conditions governing the country, most of Iranian firms prefer to convert the cash fund into other assets and this cause that the firms fail meet debts deadlines and this damages the credit of organization. The experience has shown that one of major reasons which cause that most of firms sustain financial distress and finally, some of them end up with bankruptcy is lack of proper management of working capital. This paper aims to determine the relation between firm expenditure with working capital management in firms listed in Tehran Stock Exchange. Along this, firm expenditure include capital expenditure and operating expenditure as independent variables and Net Liquidity Balance (NLB) and Working Capital Requirement (WCR) are considered as criteria of working capital management and study dependent variables. In this paper, one also considers operating cash flow, sale growth, and long-term debt to equity ratio and stock market to book value ratio are considered as independent variables. Data used in this paper include a sample consisted of 128 firms listed in Tehran Stock Exchange over 2009-2013 period. Linear regression pattern in hybrid method is used for analyzing data and testing hypothesis. Results obtained from study hypothesis test based on regression analysis suggest that there is a reverse significant relation between firm expenditure including capital expenditure, operating expenditure with working capital management. Similarly, this conclusion is drawn that rate of firm growth and firm size play mediatory role in the relation between firm expenditure and net liquidity balance.Keywords: capital expenditure, Operating expenditure, working capital requirement, net liquidity balance, working capital management,JEL Classifications: G1, G2

 Artículos similares

       
 
Alamanda Rizka Hasanah, Ni Putu Eka Widiastuti     Pág. 207 - 219

 
Damiana Noor Firdauza, Yan Rahadian     Pág. 49 - 60

 
Shenghui Tong, James Murtagh and Richard Proctor    
This paper examines and compares the dividend policies of American depository receipt (ADR) firms and U.S. firms and identifies the factors that determine these policies for both types of companies. We find that ADR firms have higher dividend yields than... ver más

 
YoungHa Ki and Ramesh Adhikari    
Determinants of a firm?s cash holdings have been a popular topic of research in finance, especially after the rapid surge in cash holdings for U.S. firms since the 1980s. The wide array of research has focused primarily on firm-specific factors to explai... ver más

 
Anatol Melega,Veronica Grosu,Anamaria Geanina Macovei,Daniel Botez    
Business performance, as a whole, represents the main concern for financial information users, as a risk assessment tool meant to establish the effectiveness and efficiency of the work performed. Over time, there was an ongoing challenge related to busin... ver más