Open Access Articles

Working Capital Efficiency and True Performance of Companies in Iran's Capital Market

Authors

Seyyed Esmaeil Najafi * Department of Industrial Engineering, Science and Research Branch, Islamic Azad University, Tehran, Iran.
Akbar Alem-Tabriz Department of Management and Accounting, Shahid Beheshti University, Tehran, Iran.

https://doi.org/10.22105/aaa.v1i4.51

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Abstract

The main objective of this study was to investigate the relationship between WCM efficiency using the DEA approach and the actual performance of Iranian manufacturing firms. 1440 company year observations in 5 industries for the period 2006 to 2021 were used for the analysis. In the present study, the DEA input-oriented BCC model was used. This study also used four input and two output variables to calculate WCM efficiency. The study results showed a positive and significant relationship between working capital efficiency, company size, and company growth opportunities with their performance. The results also showed a negative relationship between leverage and performance. The results of additional tests showed a non-linear inverted U-shaped relationship between working capital efficiency and performance.

Keywords

Data envelopment analysis Working capital efficiency Actual performance

References (34)

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Published 2024-12-27
Issue Vol. 1 No. 4 (2024): Accounting and Auditing with Applications
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Najafi, S. E. ., & Alem-Tabriz, A. . (2024). Working Capital Efficiency and True Performance of Companies in Iran’s Capital Market. Accounting and Auditing With Applications , 1(4), 205-214. https://doi.org/10.22105/aaa.v1i4.51

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