Family Firms and Working Capital Management
محورهای موضوعی : • Emerging technology in the field of Accounting and its futureMohammad Hossein Fatheh 1 , Hossein Sadeghi 2
1 - دانشگاه پیام نور
2 - کارشناسی ارشد، گروه حسابداری، دانشگاه پیام نور، تهران، ایران.
کلید واژه: Working Capital Management, Family Firms, Receivables Collection Period, Debt Payment Period, Inventory Turnover Period.,
چکیده مقاله :
Abstract
Objectives: This research aims to investigate the relationship between family firms and working capital management. Working capital management involves the management of current assets and liabilities to achieve a balance that maximizes shareholder returns on investments.
Methodology/Design/Approach: This applied study employs a causal correlational methodology. The statistical population consists of all firms listed on the Tehran Stock Exchange. Using systematic elimination sampling, 136 firms were selected as the research sample and analyzed over a ten-year period from 2014 to 2023.
Findings: The results indicate an inverse relationship between family firms and the cash conversion cycle. Additionally, there is a direct relationship between family firms and the period for collecting receivables. Furthermore, a direct relationship exists between family firms and the inventory turnover period, while an inverse relationship is observed between family firms and the period for debt repayment.
Innovation: This research contributes to the existing literature by providing insights into how family ownership influences working capital management practices. It highlights the unique dynamics of family firms in managing their operating cycles compared to non-family firms, offering practical implications for stakeholders in understanding how ownership structure can affect financial performance.
Abstract
Objectives: This research aims to investigate the relationship between family firms and working capital management. Working capital management involves the management of current assets and liabilities to achieve a balance that maximizes shareholder returns on investments.
Methodology/Design/Approach: This applied study employs a causal correlational methodology. The statistical population consists of all firms listed on the Tehran Stock Exchange. Using systematic elimination sampling, 136 firms were selected as the research sample and analyzed over a ten-year period from 2014 to 2023.
Findings: The results indicate an inverse relationship between family firms and the cash conversion cycle. Additionally, there is a direct relationship between family firms and the period for collecting receivables. Furthermore, a direct relationship exists between family firms and the inventory turnover period, while an inverse relationship is observed between family firms and the period for debt repayment.
Innovation: This research contributes to the existing literature by providing insights into how family ownership influences working capital management practices. It highlights the unique dynamics of family firms in managing their operating cycles compared to non-family firms, offering practical implications for stakeholders in understanding how ownership structure can affect financial performance.
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