Working Capital Management Policies of Listed Companies in the Tehran Stock Exchange
International Business Management, 10(15), 2016, DOI: 10.3923/ibm.2016.3108.3112
Posted: 25 Aug 2016
Date Written: 2016
Abstract
The present study examines the working capital procedures of companies listed in Tehran Stock Exchange (TSE). The population consisted of all manufacturing companies listed on the TSE at the end of year 2013. The standard survey questionnaires were mailed to all sample firms. In order to test hypotheses, Chi-square is used. The results of the research have been compared with similar results of previous studies conducted in companies within USA, Canada, and Australia. We find that most of Iranian companies use unofficial working capital policies compared with these countries. Moreover, the results also showed that Iranian companies are more risk-averse for managing working capital and are associated with more conservative policies. In addition, Iranian companies have no scheduled programming to use the Just in Time (JIT) techniques to manage their inventories.
Keywords: working capital, working capital management, comparative study, Tehran Stock Exchange
JEL Classification: M41
Suggested Citation: Suggested Citation