Investigating the role of different industries on relationship between working capital management and Tobin’s Q

Valahzaghard, M.; Saeedi, A.; Moradpur, N.

Management Science Letters

ISSN 1923-9343 (Online) - ISSN 1923-9335 (Print) Quarterly Publication Volume 3 Issue 12 pp. 3031-3036 , 2013

Investigating the role of different industries on relationship between working capital management and Tobin’s Q Pages 3031-3036 Download PDF

Authors: Mohammad Khodaei Valahzaghard, Ali Saeedi, Nasrollah Moradpur

Keywords: Aggressive Financing Policy, Aggressive Investment Policy, Tobin’s Q, Working capital management

Abstract: This paper presents an empirical investigation to study the effect of industry type on relationship between Tobin’s Q and working capital management among selected firms from Tehran Stock Exchange. The proposed study gathers the necessary financial information from 219 different firms over the period 2001-2011 and categorizes them based on different sectors. There are five independent variables including current ratio, the ratio of current assets to total assets, debt ratio, the ratio of current liabilities to total assets and total cash. Using a linear regression by considering type of industry as dummy variable, the study detects that there was a positive and meaningful relationship between working capital and Tobin-Q in various industries.

How to cite this paper

 Valahzaghard, M., Saeedi, A & Moradpur, N. (2013). Investigating the role of different industries on relationship between working capital management and Tobin’s Q.Management Science Letters , 3(12), 3031-3036.

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