Investigation of the Impact of Company Characteristics on Working Capital Management

The main purpose of this paper is to investigation of the impact of company characteristics on working capital management. In this regard, the current ratio, quick ratio and sale growth is controlled. In this study, cash conversion cycle were used as the proxy for working capital management and used variables growth opportunities, profitability, capital structure, operating cash flows as the companies specific characteristics. The data used consists of a sample of 80 firms that are publicly traded in the Tehran Stock Exchange (TSE) in the period 1384-1389. A multi-variable regression model is used for testing of hypotheses and data analyses. The results from hypotheses testing show that there is a significant negative relationship between growth opportunities and operating cash flows characteristics to working capital management. Also there is a significant positive relationship between capital structure characteristic to working capital management. In addition, results showed that there is no significant relationship between profitability and cash conversion cycle.