Investigation the relationship between working capital policy with profitability and operational risk of the listed companies in Tehran Stock Exchange

Ali Reza Ma toufi¹

1) Department of Accounting, Gorgan Branch, Islamic Azad University, Gorgan, Iran.

IOI Code : XBZK-DAFDF
Publication : national Congress on management economics accountanat(emacong.com)
Abstract :
    In challenging economic environment that international organizations seeks for new ways to grow and improve financial performance and risk reduction, working capital is consider as a source of to improve the financial performance. However, working capital management is the delicate balance between preserving cash contact for support of daily operations and maximizes short-term investment opportunities. This study aimed to investigate the relationship between policy of working capital with profitability and operational risk in the listed companies of Tehran Stock Exchange. For this purpose 103 companies in the period between 2011 to 2016 were selected as a sample. Statistical models to evaluate hypotheses were analyzed using software EVIEWS. Results show that there is a significant positive correlation between current debt aggressive policies with the return of assets. The results of the second to fourth model shows an inverse relationship between current debt aggressive policy and return on equity (second model), Tobin index (third model), operating risk (standard deviation of return on assets) (the fourth model), and shows a positive relationship between current assets aggressive policy and return on equity (second model), Tobin index (third model), operating risk (standard deviation of return on assets) (the fourth model). But the results of this study didn’t show a significant relationship between current assets and liabilities aggressive policy with operational risk (standard deviation of operating cash flow) showed.

Keywords : working capital policy operational risk return on assets return on equity q tubin