The role of working capital management in profitability clearing of listed firms in Tehran Stock Exchange by method of EGLS

Working capital management is one of the most important issues in financial management and Corporate finance that focuses on current liabilities and current assets. The aim of this research is to investigate the relationship between working capital management and profitability of listed firms in Tehran stock exchange. The research in class of the field study and with the use of techniques of panel data Includes 3120 observations (company/season) is done. Therefore the seasonal information of 156 firms of listed firms in Tehran stock exchange during the period of 1389-1393 has been investigated. In this research، in order to not false regression ، stationary test on the Research variables used. and to specify the type of a hybrid model (Panel model vs pooled model) F limer-test used، and to specify the type of the Panel model (fixed effects vs random effects) The hausman test has been used.ultimately in this Research the Panel data with fixed effects model and by EGLS method has been used. Eviews software to test assumptions and The estimate of research models and analysis of the results of the research models is used. Research findings indicates that between all of the elements of working capital with profitability of companies significant inverse relationship exists.