Investigating the relationship between behavioral bias and life cycle with working capital management

The purpose of this study was to investigate the relationship between behavioral bias and life cycle with the working capital management of firms accepted in Tehran Stock Exchange. The study of behavioral bias was done through a questionnaire and a review of working capital management and firm life cycle by the financial statements of sample companies. The research period is 2015 and the selected sample consists of 70 companies. To investigate the research hypotheses, ANOVA test was used in SPSS software and ordinary least squares method and cross-sectional method in EViews software. Findings showed that there is a significant difference between management of working capital in different stages of firm life cycle. Investigating the relationship between behavioral biases also showed that excessive reliability, access, passive behavior, and harmful effects have a positive and significant effect on the management of working capital and the relationship between postural errors, randomness, and goodness, and pess mism with working capital management, although positive, is not meaningful.