ISSN 2394-5125
 

Review Article 


INVESTIGATING THE RELATIONSHIP BETWEEN WORKING CAPITAL MANAGEMENT STRATEGIES AND RISK MANAGEMENT FOR COMPANIES LISTED ON THE TEHRAN STOCK EXCHANGE

Meysam Ghasemi, Majid Ghasemi.

Abstract
The various working capital management strategies adopted by businesses influence their liquidity, risk, and return. This study investigates the relationship between working capital strategies and corporate risk management. The statistical population of this research consists of companies listed on the Tehran Stock Exchange in the 20062012 interval. One hundred forty companies were studied from nine industries over a seven-year period using a screening method. Corporate data were collected from stock market statistics. Financial statements, including balance sheets, income statements, and explanatory notes of financial statements at the end of each fiscal year (March 19), were used as research tools. Moreover, descriptive statistics and model parameters for statistical analysis and inference were calculated using suitable tests (including Hausman and Pooling), EXCEL spreadsheets, and the EViews package. The results revealed a significant positive relationship between working capital management strategies (aggressive, hedging, conservative, and uncertain) and risk management. The results also indicated that only conservative strategy has a significant negative relationship with risk management.

Key words: Working Capital Management Strategy, Aggressive Strategy, Conservative Strategy, Hedging Strategy, Risk Management


 
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Pubmed Style

Meysam Ghasemi, Majid Ghasemi. INVESTIGATING THE RELATIONSHIP BETWEEN WORKING CAPITAL MANAGEMENT STRATEGIES AND RISK MANAGEMENT FOR COMPANIES LISTED ON THE TEHRAN STOCK EXCHANGE. JCR. 2020; 7(4): 474-483. doi:10.31838/jcr.07.04.91


Web Style

Meysam Ghasemi, Majid Ghasemi. INVESTIGATING THE RELATIONSHIP BETWEEN WORKING CAPITAL MANAGEMENT STRATEGIES AND RISK MANAGEMENT FOR COMPANIES LISTED ON THE TEHRAN STOCK EXCHANGE. http://www.jcreview.com/?mno=94704 [Access: May 30, 2021]. doi:10.31838/jcr.07.04.91


AMA (American Medical Association) Style

Meysam Ghasemi, Majid Ghasemi. INVESTIGATING THE RELATIONSHIP BETWEEN WORKING CAPITAL MANAGEMENT STRATEGIES AND RISK MANAGEMENT FOR COMPANIES LISTED ON THE TEHRAN STOCK EXCHANGE. JCR. 2020; 7(4): 474-483. doi:10.31838/jcr.07.04.91



Vancouver/ICMJE Style

Meysam Ghasemi, Majid Ghasemi. INVESTIGATING THE RELATIONSHIP BETWEEN WORKING CAPITAL MANAGEMENT STRATEGIES AND RISK MANAGEMENT FOR COMPANIES LISTED ON THE TEHRAN STOCK EXCHANGE. JCR. (2020), [cited May 30, 2021]; 7(4): 474-483. doi:10.31838/jcr.07.04.91



Harvard Style

Meysam Ghasemi, Majid Ghasemi (2020) INVESTIGATING THE RELATIONSHIP BETWEEN WORKING CAPITAL MANAGEMENT STRATEGIES AND RISK MANAGEMENT FOR COMPANIES LISTED ON THE TEHRAN STOCK EXCHANGE. JCR, 7 (4), 474-483. doi:10.31838/jcr.07.04.91



Turabian Style

Meysam Ghasemi, Majid Ghasemi. 2020. INVESTIGATING THE RELATIONSHIP BETWEEN WORKING CAPITAL MANAGEMENT STRATEGIES AND RISK MANAGEMENT FOR COMPANIES LISTED ON THE TEHRAN STOCK EXCHANGE. Journal of Critical Reviews, 7 (4), 474-483. doi:10.31838/jcr.07.04.91



Chicago Style

Meysam Ghasemi, Majid Ghasemi. "INVESTIGATING THE RELATIONSHIP BETWEEN WORKING CAPITAL MANAGEMENT STRATEGIES AND RISK MANAGEMENT FOR COMPANIES LISTED ON THE TEHRAN STOCK EXCHANGE." Journal of Critical Reviews 7 (2020), 474-483. doi:10.31838/jcr.07.04.91



MLA (The Modern Language Association) Style

Meysam Ghasemi, Majid Ghasemi. "INVESTIGATING THE RELATIONSHIP BETWEEN WORKING CAPITAL MANAGEMENT STRATEGIES AND RISK MANAGEMENT FOR COMPANIES LISTED ON THE TEHRAN STOCK EXCHANGE." Journal of Critical Reviews 7.4 (2020), 474-483. Print. doi:10.31838/jcr.07.04.91



APA (American Psychological Association) Style

Meysam Ghasemi, Majid Ghasemi (2020) INVESTIGATING THE RELATIONSHIP BETWEEN WORKING CAPITAL MANAGEMENT STRATEGIES AND RISK MANAGEMENT FOR COMPANIES LISTED ON THE TEHRAN STOCK EXCHANGE. Journal of Critical Reviews, 7 (4), 474-483. doi:10.31838/jcr.07.04.91