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The Effect of Ownership Structure on Cash Conversion Cycle in Listed Firms on Tehran Stock Exchange

Author

Listed:
  • Elaheh Javadi

    (Department of Accounting, Master's Student in Accounting, Science and Research Branch, Islamic Azad University, Tehran, Iran,)

  • Hashem Nikoumaram

    (Department of Accounting, Science and Research Branch, Islamic Azad University, Tehran, Iran.)

Abstract

This study aims to investigate the effect of ownership structure in terms of ownership type and ownership concentrate on cash conversion cycle (CCC) in 115 listed firms on Tehran stock exchange between 2008 and 2014. The theoretical basis and the data used in this study were obtained through library research. Also, the hypotheses formulated in the present research were tested using correlation analysis based on multivariate regression analysis. The results obtained by testing the hypotheses show that there is a significant and negative correlation between institutional ownership and CCC and a significant and positive correlation between firm ownership and CCC. The results of the study also indicate that there is not a significant correlation between major shareholder ownership and CCC.

Suggested Citation

  • Elaheh Javadi & Hashem Nikoumaram, 2017. "The Effect of Ownership Structure on Cash Conversion Cycle in Listed Firms on Tehran Stock Exchange," International Journal of Economics and Financial Issues, Econjournals, vol. 7(4), pages 453-458.
    • Handle: RePEc:eco:journ1:2017-04-54
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    References listed on IDEAS

    as
    1. Elyasiani, Elyas & Jia, Jingyi, 2010. "Distribution of institutional ownership and corporate firm performance," Journal of Banking & Finance, Elsevier, vol. 34(3), pages 606-620, March.
    2. Enqvist, Julius & Graham, Michael & Nikkinen, Jussi, 2014. "The impact of working capital management on firm profitability in different business cycles: Evidence from Finland," Research in International Business and Finance, Elsevier, vol. 32(C), pages 36-49.
    3. Pound, John, 1988. "Proxy contests and the efficiency of shareholder oversight," Journal of Financial Economics, Elsevier, vol. 20(1-2), pages 237-265, January.
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    Cited by:

    1. LAMBE, Isaac, Ph.D & ORBUNDE, Bemshima, Ph.D & TION, Williams A. & HARUNA, Dzugwahi, 2022. "Moderating Role of Managerial Ownership on the Effect of Cash Conversion Cycle and Receivable to Payable ratio on Firm Performance in Listed Industrial and Consumer Goods Companies in Nigeria," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 6(11), pages 868-880, November.

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    More about this item

    Keywords

    Cash Conversion Cycle; Ownership Structure; Institutional Ownership; Cash;
    All these keywords.

    JEL classification:

    • C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

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