The Relationship betweenWorking Capital Management and Firm Characteristics: Evidence From Tehran Stock Exchange(TSE)
Ebrahim Lotfinia, Zahra Mousavi, Azam Jari

Abstract
Working capital management of a firm has been recognized as an important area in financial management. Thisfieldcan include decisions about amount and the combination of current assets and financing them. The process of working capital management includes decisions about different aspect of cash investment, the maintenance of certain level of inventories and managing of receivable and payable accounts. The main aim of this study investigate the relationship between working capital management and firm characteristics . We used factors such as firm size ,financial leverageand Q Tobin ratio for evaluating firm characteristics and net liquidity balance as criterion for evaluating of working capital management . For testing the researchhypotheses, financial statements’ data of 80companies accepted in Tehran Stock Exchange has been used and for analyzing and testing hypotheses, Stepwise regression model is used. Research results show that there is positive relationship between working capital management (NLB) and firm size , while there is a negative relationship between working capital management and financial leverage . Morever , the result show that no relationship between working capital management and Q Tobin.

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