THE RELATION BETWEEN CASH CONVERSION CYCLE AND ECONOMIC VALUE ADDED IN COMPANIES LISTED ON TEHRAN'S STOCK EXCHANGE, IRAN

Zahra Chamaazi

Abstract


The present research investigates the effects of cash conversion cycle on economic value added among companies listed on Tehran's stock exchange. The sample of study includes 118 companies. The multivariate-regression method has been used for analysis of research hypotheses. Results indicated that a reverse and statistically significant relationship exists between companies' cash conversion cycle and their economic value added. In other words, by reducing the length of cash conversion cycle within reasonable limits, companies are able to increase their economic value added.

 

JEL: E22, G32, D21

 

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Keywords


working capital, working capital management, profitability, cash conversion cycle

References


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