The effect of financial management Practices on the financial performance of companies listed on the Tehran Stock Exchange

Subject Areas :

hamid kakaei ¹ , Mehdi Mazaheri ² , Gholamreza abbasi ³ , Hamideh Honarmand ⁴

1 - Islamic Azad University, Central Tehran Branch, Tehran, Iran
2 - Master of Financial Management, Yazd University, Yazd, Iran
3 - Islamic Azad University, Central Tehran Branch, Tehran, Iran
4 - Rasht Azad University

Received: 2022-06-18 Accepted : 2022-06-22 Published : 2022-01-21

Keywords: performance, Practice, financial, stock exchange, Financial management,

Abstract :

The purpose of this study was to investigate the impact of financial management measures on financial performance. The research was applied in terms of purpose and quantitative in terms of data type and based on descriptive survey studies. The statistical sample included 150 managers of companies listed on the Tehran Stock Exchange in the period 2011-2022. Data analysis was performed using SPSS and PLS software. Structural equation modeling has also been used to study the conceptual model and research hypotheses. Finally, after examining the hypotheses, GOF index was used to examine the model fit to predict endogenous variables. The results show that financial management measures have a positive and significant effect on the financial performance of companies listed on the Tehran Stock Exchange. The results also showed that financial management measures, which include components such as investment measures, working capital management measures, profit sharing measures and capital structure decision-making measures, have a positive and significant impact on companies' financial performance.