The Relation of Working Capital and Fixed Assets: a Study

Open access

Abstract

The present study aims to investigate the relationship between working capital changes and fixed assets with asset return of 120 manufacturing listed companies in Tehran Stock Exchange during 2006-2010. Pearson correlation and Regression test are employed to determine the kind of relationship between dependent and independent variables, hypotheses test and evaluating normality of data respectively. The outcomes of the study suggest that there is a significant relationship between working capital changes and fixed assets with assets return in the research community.

If the inline PDF is not rendering correctly, you can download the PDF file here.

  • Afza T. & Nazir M. (2009). Impact of aggressive working capital management policy on firms’ profitability. The IUP Journal of Applied Finance 15(8) 20-30.

  • De Chazal Du Mee. (1998). Research Study on Small and Medium Enterprises Final Report.

  • Deakins D. Logan D. & Steele L. (2001). The Financial Management of the Small Enterprise ACCA Research Report No. 64.

  • Deloof D. (2003). Does Working Capital Management affect Profitability of Belgian Firms? Journal of Business Finance and Accounting Vol. 30 No. 3 & 4 573-587.

  • Enayati S. (2004). Review and Explain Working Capital Management in Companies listed on Tehran Stock Exchange. MA Thesis Shahid Beheshti University Iran.

  • Fahimzadeh S.R (1998). Relationship between liability with profit and assets return. MA Thesis Tarbiat Modarres University Iran.

  • Gill A. Biger N. & Mathur N. (2010). The Relationship between Working Capital Management And Profitability: Evidence From The United States Business and Economics Journal Vol. 10 1-9.

  • Grablowsky B.J. (1976). Mismanagement of Accounts Receivable by Small Business Journalof Small Business Vol. 14 23-28.

  • Howorth C. & Westhead P. (2003). The focus of working capital management in UK small firms Management Accounting Research Vol. 14 No. 2 94-111.

  • Karaduman H. Akbas H. & Caliskan A. (2011). The relationship between working capital management and profitability: evidence from an emerging market International ResearchJournal of Finance and Economics Issue 62 52-66.

  • Lazaridis I. & Tryfonidis D. (2006). Relationship between Working Capital Management and Profitability of Listed Companies in the Athens Stock Exchange. Journal of FinancialManagement and Analysis Vol. 19 No. 1 38-45.

  • Mathuva D (2009). The influence of working capital management components on corporate profitability: a survey on Kenyan listed firms. Research Journal of Business Management Vol. 3 1-11.

  • Namazi M. & Salehi M. (2010). The Role of Inflation in Financial Repression: Evidence of Iran. World Applied Sciences Journal Vol. 11 No. 6 653-661.

  • Rostami V. & Salehi M. (2011). Necessity for Reengineering Qualitative Characteristics of Financial Reporting arrangement to Reduce Information Asymmetry: Evidence of Iran African Journal of Business and Management Vol. 5 No. 8 3274-3288.

  • Narasimhan M.S. & Murty L.S. (2001). Emerging Manufacturing Industry: A Financial Perspective Management Review June 105-112.

  • Peel M.J. Wilson N. & Howorth C.A. (2000). Late payment and Credit management in the small firm sector: Some Empirical Evidence International Small Business Journal 18 (2) 52-68.

  • Peel M.J. & Wilson N. (1996). Working capital and financial management practices in the small firm sector International Small Business Journal 14 (2) 52-68.

  • Rafuse M.E. (1996). Working Capital Management: An Urgent Need to Refocus Journal ofManagement Decision Vol. 34 No. 2 59-63.

  • Raheman A. & Nasr M. (2007). Working capital management and profitability-case of Pakistani firms International Review of Business Research Papers 3 (1) 279-300.

  • Raheman A. Afza T. Qayym A. & Mahmood A. (2010). Working Capital Management and Corporate performance of manufacturing sector in Pakistan International Research Journalof Finance and Economics Vol. 47 151-163.

  • Rajesh M. Reddy (2011). Impact of working capital management on firms’ profitability GlobalJournal of Finance and Management Vol. 3 No. 1 151-158.

  • Salehi M. & Rostami V. (2009). Relationship between Going Concern Concept and P/E Ratio in Emerging Market: Case of Iran Journal of Management Research Vol. 1 No. 1 1-22.

  • Salehi M. Talebnia G. Valipour H. & Shafiee S. (2009). Empirical Study of the Relationship between Ownership Structure and Firm Performance: Some Evidence of Listed Companies on Tehran Stock Exchange Zagreb International Review of Economics & Business Vol. 13 No. 1 51-64.

  • Salehi M. (2008). The Role of Financial Intermediaries in Capital Market Zagreb InternationalReview of Economic and Business Vol. 6 No. 1. May 97-109.

  • Salehi M. (2009). Tobin’s Q Model and Cash Flows from Operating and Investing Activities Evaluating in Listed Companies in Iran Zagreb International Review of Economic andBusiness Vol. 7 No. 2 71-82.

  • Yung-Jang W. (2002). Liquidity management operating performance and corporate value. Journal of multinational financial management Vol. 12 159-169.

Search
Journal information
Metrics
All Time Past Year Past 30 Days
Abstract Views 0 0 0
Full Text Views 244 74 1
PDF Downloads 138 56 1