The Relationship between the Efficiency of Working Capital Management Companies and Corporate Rule in Tehran Stock Exchange

AbstractThe management of working capital, in the context of this study, refers to the management of current assets and liabilities which it is applied to equilibrate current assets and liabilities. So, the control of current assets and liabilities is of great importance. Therefore, mechanisms are essential to monitor and control this kind of management. Appropriate corporate governance includes of mechanisms that help maintain an optimal working capital in an organization. Hence, the purpose of the present study is to investigate the impact of corporate governance on the management efficiency of working capital in accepted companies in Tehran's stock exchange for the period of 2008-2013. To achieve the objectives of this study, a sample was selected of 115 companies through elimination sampling. This study used mechanisms such as size of the board of directors, independence of the board of directors, institutional stockholders and ownership concentration. The variables used for measuring the working capital management include accounts payable, cash conversion cycle, cash holdings, current ratio and management efficiency of working capital. The findings of this study indicate that corporate governance mechanisms play an important role in improving the efficiency of working capita