The Role of Working Capital Management in Automobile Industry in Iran
Journal Title: International Research Journal of Applied and Basic Sciences - Year 2013, Vol 4, Issue 9
Abstract
Working capital management plays a significant role in automobile industry. Working capital management is closely linked with the management of cash. And, it related to short-term decisions that not taken on the same basis as capital investment decisions. In This paper, we analyse the efficiency of working capital management on automobile industry in Iran for the period 2000 to 2009. For this purpose, our research involves analysis of 8 automobile companies in Tehran Stock Exchange. The results indicate that sundry debtors and inventory have a positive relationship with working capital. Also, dividends and tax liability are positively associated with working capital. Furthermore, the correlation between raw material purchase and working capital is positive, which show that the companies are not used mostly their internal resources and have a good relationship with their suppliers. Overall, our results indicate that the working capital management has a significant impact on profitability of the firms.
Authors and Affiliations
AliasgharArabahmadi| PHD Student of Accounting, Azad University of OllomTahghighat , Tehran, Iran, FarhadArabahmadi| Faculty Member of Accounting, Shahrood University of Technology, Iran, farhad.arabahmadi@gmail.com
Keywords
Related Articles
- EP ID EP5642
- DOI -
- Views 279
- Downloads 11
The relationship between knowledge management and staff’s creativity in the Water and Sewage Company of Golestan Province
The main objective of the present study is to investigate the relationship between knowledge management and innovation of employees in water and wastewater company of Golestan Province. This is applied research, and the...
The Impact of Explicit vs Implicit Compensation Strategy Training on Iranian EFL Students’ Reading Comprehension Performance
This study aims at investigating the underlying effect of explicit and implicit strategy training on reading comprehension performance of Iranian high school students. To achieve the research objectives, the researchers...
Evaluating the Effect of Education Based on the Computer Software on the Academic Performance of Environmental Health Engineering Students
Information Technology (IT) is one of the new technologies (such as computer) that by changing the teaching methods, leading the traditional concept of learning by memory to the creative and dynamic learning. The aim of...
Feasibility athletic abilities nature (ecotourism, sports) West Mazandaran using SWOT analysis
The present study investigated the feasibility of nature guides abilities Sports (Sports ecotourism) West Mazandaran using SWOT analysis (swot) was performed. The research is all the tourists who have used the services a...
First Report of Tomato Spotted Wilt Virus on Tobacco, Eggplant and Some Weeds in Syria
During spring and summer of 2013, a survey was carried out to investigate the presence of Tomato spotted wilt virus (TSWV, genus Tospovirus, family Bunyaviridae) in 389 tobacco samples, 72 eggplant samples, and weed samp...