The Value Relevance of Non-cash Net Working Capital of Listed Companies in Tehran Stock Exchange

Considering the elements of financial policy (strategy)، such as company’s financial leverage and amount of current working capital that company needs to do it’s operations، helps managers for expansion of a particular financial program and to succeed and survive in today marketplace. This paper tries to survey value relevance of non-cash net working capital. This study is a fundamental experimental research and in nature is a correlation research. The type of regression model used in this study is a regression model with pooled data. To test the research hypotheses a sample of 118 listed companies in Tehran stock exchange، is selected by using systematic elimination method of sample selection، for a period of 2006-2010. The results of the research indicate that there is no negative relationship between the net working capital investment and firm’s value. Moreover findings show extra investment in net working capital considering the current level of firm’s net working capital have negative relationship with firm’s value. Also، stockholders give an especial attention to the level of debt and capital structure of company in levered companies.