Comparison of Working Capital Management, Capital Structure and Real Investment Policies among Active and Bankrupt Firms in Tehran Stock Exchange

Bagher Asgarnezhad Nouri, Farzad Bagheri, Ali Fathi

Abstract


Financial planning is one of the important factors affecting firm success in a way to maximize firm value through proper combination of assets, debts and equity.
Policies of working capital management, real investment and capital structure are the most important components of financial planning. The aim of this research is to identify the differences in working capital management, real investment and capital structure between active and bankrupt firms. Statistical population of the research is all listed firms in Tehran stock Exchange during 2009-2014. Finally 186 firms are chosen as statistical sample of the research based on systematic sampling. The data has been analyzed by two-sample t test using SPSS software. The findings indicate that among measures of working capital
management, accounts payable period and accounts receivable period differ among active and bankrupt firms. But inventory turnover period and cash turnover period are not different. Among measures of capital structure,
findings confirm difference in long term debt to total asset ratio, short term debt to total assets ratio and total debt to total asset among active and bankrupt firms. But it doesn’t confirm the result for debt to equity ratio. Finally active
and bankrupt firms don’t have differences fixed assets.

Keywords


Bankruptcy; Working capital management; Capital structure; Fixed assets; Tehran Stock Exchange

Full Text:

PDF


DOI: http://dx.doi.org/10.3968/8609

Refbacks

  • There are currently no refbacks.


Copyright (c) 2016 International Business and Management

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.


Share us to:   


Reminder

  • How to do online submission to another Journal?
  • If you have already registered in Journal A, then how can you submit another article to Journal B? It takes two steps to make it happen:

1. Register yourself in Journal B as an Author

  • Find the journal you want to submit to in CATEGORIES, click on “VIEW JOURNAL”, “Online Submissions”, “GO TO LOGIN” and “Edit My Profile”. Check “Author” on the “Edit Profile” page, then “Save”.

2. Submission

  • Go to “User Home”, and click on “Author” under the name of Journal B. You may start a New Submission by clicking on “CLICK HERE”.


We only use three mailboxes as follows to deal with issues about paper acceptance, payment and submission of electronic versions of our journals to databases: caooc@hotmail.com; ibm@cscanada.net; ibm@cscanada.org

 Articles published in International Business and Management are licensed under Creative Commons Attribution 4.0 (CC-BY).

 INTERNATIONAL BUSINESS AND MANAGEMENT Editorial office

Address: 1055 Rue Lucien-L'Allier, Unit #772, Montreal, QC H3G 3C4, Canada.
Telephone: 1-514-558 6138 
Website: Http://www.cscanada.net Http://www.cscanada.org 
E-mailcaooc@hotmail.com

Copyright © 2010 Canadian Research & Development Centre of Sciences and Cultures