چکیده:
Optimal working capital management can positively effect on the Firm performance,
but this relationship can be affected by major characteristics of the firm,
making an important subject for research. This research investigates the moderating
role of firm characteristics on the relation between working capital management
and financial performance of the firms listed in TSE during 2008 – 2017
period. Based on existing researches, three characters are considered as moderating
variables in this research include firm size, debt ratio, and Governmental
ownership. Financial performance and working capital management are measured
using return on assets (ROA) and cash conversion cycle (CCC), respectively. We
use from multivariate regression model with panel data for test of research hypotheses.
The Results of this study show that, firm size affects the Relation between
CCC (as a measure of working capital management) and ROA (as a measure
of firm performance). However, debt ratio and Governmental ownership don’t
any significant effect on the relationship between working capital management
and financial performance of firms
خلاصه ماشینی:
The Moderating Role of Firms Characteristics on the Relation- ship between Working Capital Management and Financial Per- formance Hasan Zalaghi*, Maryam Godini, Kefsan Mansouri aDepartment of Accounting, Faculty of Economic and Social Sciences, Bu-Ali Sina University, Hamedan, Iran ARTICLE INFO Article history: Received 12 Jue 2018 Accepted 20 December 2018 Keywords: firm characteristics Working Capital Financial Performance cash conversion cycle ABSTRACT Optimal working capital management can positively effect on the Firm perfor- mance, but this relationship can be affected by major characteristics of the firm, making an important subject for research.
However, debt ratio and Governmental ownership don’t any significant effect on the relationship between working capital management and financial performance of firms 1 Introduction In some sense, profitability is a measure of health of a firm and liquidity is a vital sign that indicat- ing the firm is economically alive.
Considering the mentioned theoretical foundations and available re- search background, similar to the researches presented by Deloof [14], Uyar [27], and Nilsson [15] firm size is expected to affect the relationship between working capital management and financial performance, as larger firms tend to have shorter cash conversion cycle.
This finding is in agreement with the results of the research by Nilsson [15], Ahmed [24] and Uyar [27] which means that firm size has a significant effect on the relationship between working capital management and financial performance of the firm.