Working Capital Solvency Level and Profitability - Evidence from Iran

Working Capital Solvency Level and Profitability - Evidence from Iran

Author by Prof. Enyi Enyi

Language: English

Abstract

Working capital management has an important role to play on a firm’s success or failure because of its effect on a firm’s performance and liquidity. This study was based on secondary data collected from 120 manufacturing firms listed on Tehran Stock Exchange Market for the period of 8 years 2003-2010 with an attempt to investigate working capital adequacy level and performance of the firms. The results demonstrate that firms with adequate working capital achieved significant better performance than those firms which have less working capital in relation to their operational sizes.


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