Meysam Kaviani
Frshad Bozorgi
Farzad Nikfarjam
Abstract
In the current challenging economy with increasing environmental pressures and limited external resources, current assets and liabilities, i.e., the working capital of economic enterprises, are increasi
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Meysam Kaviani
Frshad Bozorgi
Farzad Nikfarjam
Abstract
In the current challenging economy with increasing environmental pressures and limited external resources, current assets and liabilities, i.e., the working capital of economic enterprises, are increasingly important, and the working capital of economic enterprises can be considered as a competitive advantage for them. The working capital of the company is the amount invested in current assets. Working capital is considered as a life-giving force for every economic unit and its management should be considered as an important function in management. The purpose of this research is to investigate and analyze the working capital behavior of companies under economic recession in Tehran's capital market. For this purpose, the information of the companies in the period of 10 years from 2013 to 2022 was reviewed and 110 companies were selected. In order to test the hypotheses of the research, multivariate regression method was used. The results showed that the economic recession has a significant impact on the components of working capital management, while the shock from the production sector does not affect them considering the role of financial constraints. The results also showed that the economic recession has a positive effect on the ratio of working capital and a negative effect on the cash conversion cycle, and finally that the economic recession, while having a negative effect on performance, is also affected by the shock from the production sector with the moderating role of financial restrictions.
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