Working Capital Policy and Stock Profitability

Subject Areas : Financial Knowledge of Securities Analysis

Hasham Valipor ^{1 *} , Zahra Sadat Hossiny ^{2 *}

1 - نویسنده اصلی و مسئول مکاتبه
2 - ندارد

Received: 2009-03-10 Accepted : 2009-04-04 Published : 2009-03-21

Keywords: working capital management, Stock Profitability, Working&#x0D, &#x0D, Capital, Working Capital Policy,

Abstract :

The aim of this research is to find out the effect of working capitalmanagement on profitability and stock return. Working capital is one ofthe most important item of the right side of the balance sheet of eachcompany and is equal to the current assets. Working capital managementis the best compound of the items of working capital that causes thehighest wealth for the company’s shareholders.This research has examined 75 companies of the SEC of the Tehran in aperiod since 1379 to 1386. The method is correlation. For analyzingdata’s, Pierson rate of coefficient and multiline regression and ANOVAanalysis has used.The results have shown that working capital policies have relationwith profitability. Another result have shown that profitability of stockhave direct relation only with working capital policy and don᾿ t haverelation with growth of fixed assets and growth of sales .