Cash Flow Management and Financial Performanceof Listed Companies on Tehran Stock Exchange

The purpose of current research is evaluating cash flow positions of a firm via compositemeasures and metrics such as Days of Sales Outstanding (DSO), Days of InventoryOutstanding (DIO), Days of Payables Outstanding (DPO), Cash Conversion Cycle (CCC),Operating Cash Cycle (OCC) and the effect of these changes on the firm financialperformance. For this purpose, the listed companies in Tehran Stock Exchange have beeninvestigated. In order to examining the relation between cash flow management and firmfinancial performance, linear regression have been utilized. In this research we use eightvariables and this study attempts to address six hypotheses. The samples including 67 firmswhich are studied during 2009-2013 and consists of twenty periods of quarterly data.The findings indicates that there is a meaningful relation between Days of InventoryOutstanding (DIO), Days of Payables Outstanding (DPO), Cash Conversion Cycle (CCC),Operating Cash Cycle (OCC) and financial performance, but there isn’t any meaningfulrelation between Days of Sales Outstanding (DSO) and firm financial performance.