Performance of Working Capital Management Indices of Working Capital Insurance Companies in Tehran Stock Exchange Using Data Envelopment Analysis
Subject Areas : International Journal of Data Envelopment Analysis
Erfan Mirzaee
1
,
Mahnaz Ahadzadeh Namin
2
,
Shadi Shahverdiani
3
1 - Department of Financial Management, Shahr-e-Qods Branch, Islamic Azad University, Tehran, Iran.
2 - Department of Mathematics, Shahr-e-Qods Branch, Islamic Azad University, Tehran, Iran
3 - Department of Financial Management, Shahr-e-Qods Branch, Islamic Azad University, Tehran, Iran.
Keywords: Data Envelopment Analysis, working capital management, Cash, cash conversion cycle,
Abstract :
Working capital indicators can be one of the most influential indicators in companies' financial decision-making. Therefore, research in this field can be useful. The main purpose of this study is to measure efficiency by considering working capital management indicators with the help of super-efficient data envelopment analysis models. Many researchers, including Goal et al. (2014), have used current measurements of the efficiency of working capital management indicators, despite the shortcomings of the cash conversion cycle, specifically in the cash conversion cycle. In this study, according to their idea, 21 companies active in the Iran Insurance Industry Exchange have been evaluated over a 5-year period. Periodic review can reveal information about firms' performance fluctuations as well as the relationship between changes in their rankings and changes in working capital indicators. Since this assessment is based on working capital indicators, the results will provide better opportunities for business managers, shareholders and investors to make large and partial decisions. Finally, the above method of data envelopment analysis will be compared with traditional methods.