The surveying of working capital management and its components in the profitability of small and medium non-exchange firms based on panel data.

Document Type : Original Article

Authors
Mohsen Rahimi 1
Hossein Izadi 2
Hamid Jamshidi 2
1 M.A. graduated in accounting, Azad University, Islamshahr branch
2 PhD in accounting, Azad University, Islamshahr branch
Abstract
Working capital management is one of the most important areas in financial management and management of organizations to be considered, because it directly affects the liquidity and profitability of companies. The aim of this study was to investigate the importance of working capital management and its components in the profitability of small and medium enterprises are non-exchange firms. In this study territory was five-year period between 1388 to 1392, and 50 companies were selected after performing the sampling process. As well as for analysis and regression analysis was used to test research hypotheses. The results show the index constituents on working capital management and profitability of small and medium non-exchange firms and there was a significant inverse relationship. Firms can have the optimal level of capital that maximizes the value they provide. Being abundant and generous credit policy can lead to increased sales and reduced inventory shortages Available high risk and trade credit because the evaluation of product quality to provide payment to customers can lead to increased sales.
Keywords
: working capital management
average collection period
maintenance of inventory
accounts payable payment period
liquidity cycle
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