Working capital and enterprise risk policies

Subject Areas :

M.H Zohdi ¹ (مربی دانشگاه ازاد اسلامی واحد زاهدشهر)
هاشم Valipor ² (استادیار دانشگاه آزاد اسلامس واحد فیروز آباد)
A.R SHahabi ³ (کارشناس ارشد حسابداری)

Received: 2015-05-10 Accepted : 2015-05-10 Published : 2011-02-20

Keywords:

Abstract :

The reason that most bankruptcy corporations' does not succeed is the unfavorable status and improper management of working capital. These corporations have good financial status in the long run, but because of incompetent working capital, are not able to compete with other corporations' and they expelled. Profit units are able to affect corporations' rate of cash by applying various policies in relation to working capital management. These strategies can affect rate of risk and their return. The present study survey the affect of policies of corporations' working capital over the rare of Companies risk. The Population in this research has the financial statements of accepted companies in Tehran Stock Exchange (TSE). In order to analyze data, panel analyzes and ANOVA were used. To measure the corporations' risk Beta criteria was considered. The results of this research reveal that, there is a significant and positive relation ship between the policies of working capital and corporations' risk. Other findings of the present research show that there is a significant and positive relation ship between corporations' size and risk.

References:

 

ابزری، مهدی، مرتضی میر شمس شهشهانی و حسین جمعی، (1382)، "استراتژی­های سرمایه در گردش در شرکت­های داروسازی"، مجله دانشکده علوم اداری و اقتصاد دانشگاه اصفهان.

امری اسرمی، محمد، (1380)، "بررسی محتوای اطلاعاتی سود، سرمایه در گردش و جریان نقدی"، پایان نامه کارشناسی ارشد، دانشگاه تهران، دانشکده مدیریت، 32.

پیشکاری، مژگان، (1375)، "بررسی مدیریت سرمایه در گردش در شرکت های منتخب ایرانی"، پایان نامه کارشناسی ارشد.

رهنمای رودپشتی، فریدون و علی کیایی، (1387)، "بررسی و تبیین سرمایه در گردش درشرکت های پذیرفته شده در بورس اوراق بهادار تهران"، دانش و پژوهش حسابداری.

نیکومرام، هاشم، فریدون رهنمای رودپشتی و فرشاد هیبتی، (1386)، "مبانی مدیریت مالی"، جلد اول، انتشارات ترمه، 12.

نیکومرام، هاشم، فریدون رهنمای رودپشتی و فرشاد هیبتی، (1386)، "مبانی مدیریت مالی"، جلد دوم، انتشارات ترمه، 25.

ولی پور، هاشم و زهرا سادات حسینی، (1388)، "سیاست سرمایه در گردش و سودآوری سهام"، مطالعات مالی، سال دوم، شماره اول،  33- 15.

 

Afza, T., & Nazir, M., (2009), "Impact of Aggressive Working Capital Management Policy on Firms' Profitability", The IUP Journal of Applied Finance, 15 (8), 20-30.

Appuhami, Ranjith, (2008), "The Impact of Firms’ Capital Expenditure on Working Capital Management: An Empirical Study across Industries in Thailand", International Management Review, Vol. 4 No. 1, 8-21.

Baltagi, B, (2005), "Econometric Analysis of Panel Data", Third Edition, Wiley& Sons, Ltd,.

Besley, Scott and R. L. Meyer, (1987), "An Empirical Investigation of Factors Affecting the Cash Conversion Cycle", Las Vegas Nevada.

Eljelly, A., (2004), "Liquidity-Profitability Tradeoff: An Empirical Investigation in an Emerging Market", International Journal of Commerce & Management, 14(2), 48–61.

Federal Reserve, (2008), "Strategies of High Yield Working Capital in Today’s Economic Environment", Ariba, 1-7.

Fama, E. & French, K. R., (1992), "The Cross-Section of Expected Stock Returns", Journal of Finance, Vol. 2, 427-465.

Fama, E. & French, K. R, (1995), "Size and Book to Market Factors in Earnings and Returns", Journal of Finance, Vol. 50, No 1, 131-155.

Gitman, L. J. (1994), "Principles of Managerial Finance", 7th Ed. Harper Collins, 646-652.

Grablowsky, B. J., (1976), "Mismanagement of Accounts Receivable by Small Business", Journal of Small Business, 14, 23-28.

Howorth, C. and Westhead, P. (2003), "The Focus of Working Capital Management in UK Small Firms", Management Accounting Research, Vol. 14 No. 2, 94-111.

Jager, P de, (2008), "Panel Data Techniques and Accounting Research", Meditari Accountancy Research Vol. 16 No. 2, 53-68.

Loneux, M., (2004), "The Working Capital Approach", Business Analyst 25 (2), 20–4.

Noreen, Umara, Sabeen Khurram Khan and Qaisar Abbas, (2009), "International Working Capital Practices in Pakistan", International Research Journal of Finance and Economics, Issue 32, 160-170.

Padachi, Kesseven, (2006), "Trends in Working Capital Management and Its Impact on Firms’ Performance: An Analysis of Mauritian Small Manufacturing Firms", International Review of Business Research Papers, Vol.2 No. 2. October, 45 -58.

Smith K., (1980), "Profitability versus Liquidity Tradeoffs in Working Capital Management", in Readings on the Management of Working Capital. Ed. K. V. Smith, St. Paul, West Publishing Company, 549-562.

Van Horne, J. C., (1969), "Risk-Return Analysis of a Firm Working Capital", The Engineering Economist, Vol. 14 (Winter), 71–89.