The Impact of Corporate Governance on Working Capital Management Efficiency of Firms Accepted in Tehran Stock Exchange

Document Type : Original Article

Abstract

The Purpose of this study is to investigateThe Impact of Corporate Governance on Working Capital Management Efficiency of Firms Accepted in Tehran Stock Exchange. In this context , the impact of corporate governance mechanisms (board size , percentage of institutional shareholders, non-executive directors) on the efficiency of working capital management (including the accounts receivables, accounts payables, inventory , cash conversion cycle) is investigated. The sample consists of 98 companies in the period 1386 to 1390. The Excel software to perform calculations and to test the hypotheses, multiple regression method and software Evewis are used in this study. The result of statistical analysis showed that the percentage of institutional shareholders with a cash conversion cycle is inversely related with the accunts receivables,and is directly related with accounts payables and inventory. And there is no significant relationship between the board size and the variables of working capital management. there is not no significant relationship between the percentage of non-exec utive directors as well as the cash conversion cycle and accunts receivables and has a direct relationship with the accounts payables and inventory. this study is to investigate particular the association between several features of corporate governance and the efficiency of working capital management. The findings may be useful for financial managers, investors, financial management consultants, and other stakeholders.

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References

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