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Zeinab Azami & Fozieh Jeyhoon Tabar

Investigating the Factors Affecting Working Capital of Companies Using the Generalized Method of Moments

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Abstract

This paper attempted to examine the determinants of investment level in working capital of companies listed on the Tehran Stock Exchange (TSE). For this purpose, data from 143 companies listed in the TSE were employed for 2004-2014. The generalized method of moments (GMM) was used to test the hypotheses. The findings suggested that in periods with lower GDP or lower corporate profitability, lower leverage, pre-period working capital and greater information asymmetry tended to make higher investment in working capital compared to other companies. In addition, there was no significant relationship between firm size, firm age and non-executives with corporate working capital.

Keywords : GDP, GMM, information asymmetry, working capital

To cite this article

Zeinab Azami & Fozieh Jeyhoon Tabar, «Investigating the Factors Affecting Working Capital of Companies Using the Generalized Method of Moments», Bulletin de la Société Royale des Sciences de Liège [En ligne], Volume 85 - Année 2016, Actes de colloques, Special edition, 1402 - 1415 URL : https://popups.uliege.be/0037-9565/index.php?id=6143.

About: Zeinab Azami

Faculty member of Accounting, Baft Higher Education Center, Shahid Bahonar University of Kerman, Kerman, Iran, z.aazami@uk.ac.ir

About: Fozieh Jeyhoon Tabar

Faculty member of Economic, Baft Higher Education Center, Shahid Bahonar University of Kerman, Kerman, Iran, foziehjeyhoontabar@gmail.com