The impact of sustainable performance on working capital management of companies listed on the Tehran Stock Exchange
Subject Areas :
محمد حسین فتحه
1
(دانشگاه پیام نور)
khadije heidarinia
2
(MSc. of Accounting, Payame Noor University, Tehran, Iran.)
Keywords: sustainability performance, working capital management, Tehran Stock Exchange.,
Abstract :
Working capital management refers to the management of current assets and liabilities and is used to create a balance between them so that shareholders can get the maximum return for investing in assets by effectively managing working capital. The efficient management of the working capital of companies is very important for the continued survival and life of the company and shows how to use short-term capital and is also used to measure the company's liquidity. The purpose of this study is to investigate the effect of sustainability performance on working capital management of companies. The current research is applied and from the methodological point of view, the correlation is causal type (post-event). The statistical population of the research is all the companies admitted to the Tehran Stock Exchange, and using the systematic elimination sampling method, 133 companies were selected as the research sample and were examined in a 10-year period between 2012 and 2021. The results of the research hypothesis test showed that sustainability performance has an adverse effect on the liquidity conversion cycle, the average debt collection periodand the average debt payment period of companies. In factby increasing the company's activity in line withcorporate sustainabilitythe company's liquidity conversion cycle will be shorter and faster, and the company will achieve its initial capital, and on the other hand, the period of collecting claims from those with whom it has worked on credit will be reduced and the period of debt payment will be reduced. It will be reduced to others.
