The Impact of Business Cycle and Operational Efficiency of Cash Conversion on Role-Playing Indicators in Tehran Stock Exchange

Subject Areas : Stock Exchange

Davoud Mostafazadeh ¹ , Mohsen Hamidiyan ² , Fatemeh Sarraf ³

1 - Department of Financial Management, South Tehran Branch, Islamic Azad University, Tehran, Iran
2 - Department of Financial Management, South Tehran Branch, Islamic Azad University, Tehran, Iran
3 - Department of Financial Management, South Tehran Branch, Islamic Azad University, Tehran, Iran

Received: 2021-09-26 Accepted : 2022-06-04 Published : 2023-03-21

Keywords: Cash conversion cycle, Economic Value Added, Net Trading Cycle, Equity Returns, Asset Returns,

Abstract :

The main purpose of this study is to investigate the effect of the business cycle and operational efficiency of the cash flow cycle on performance appraisal criteria in the Tehran Stock Exchange. In order to reach this purpose, we were using the data of 120 manufacturing companies active in the Tehran Stock Exchange during the period 1392 to 1397, using the independent variables of cash flow cycle and net business cycle of the company by multivariate regression method, with the help of Eviews software, economic value added indices, return on assets, return on equity as a dependent variable of role-playing performance indicators to achieve the objectives of the study.The results indicated that the cash cycle and the business cycle had a positive and significant effect on the return on equity. Finally, the results indicate that the cash cycle and the business cycle have an inverse and significant effect on value-added and return on assets, and the research hypothesis has been confirmed.