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The Relation of Working Capital and Fixed Assets: a Study

Author

Listed:
  • Salehi Mahdi

    (Ph.D. Ferdowsi University of Mashhad, Iran Faculty of Economics and Business Administration Accounting Department Azadi Sq., Mashhad, Khorasan Razavi. P.O. Box: 9177948974. Iran)

Abstract

The present study aims to investigate the relationship between working capital changes and fixed assets with asset return of 120 manufacturing listed companies in Tehran Stock Exchange during 2006-2010. Pearson correlation and Regression test are employed to determine the kind of relationship between dependent and independent variables, hypotheses test and evaluating normality of data respectively. The outcomes of the study suggest that there is a significant relationship between working capital changes and fixed assets with assets return in the research community.

Suggested Citation

  • Salehi Mahdi, 2012. "The Relation of Working Capital and Fixed Assets: a Study," Folia Oeconomica Stetinensia, Sciendo, vol. 11(1), pages 47-60, January.
    • Handle: RePEc:vrs:foeste:v:11:y:2012:i:1:p:47-60:n:1
    DOI: 10.2478/v10031-012-0001-1
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    References listed on IDEAS

    as
    1. Marc Deloof, 2003. "Does Working Capital Management Affect Profitability of Belgian Firms?," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 30(3‐4), pages 573-588, April.
    2. Marc Deloof, 2003. "Does Working Capital Management Affect Profitability of Belgian Firms?," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 30(3-4), pages 573-588.
    3. Mahdi Salehi, 2008. "The Role of Financial Intermediaries in Capital Market," Zagreb International Review of Economics and Business, Faculty of Economics and Business, University of Zagreb, vol. 11(1), pages 97-109, May.
    4. Mahdi Salehi, 2009. "Tobin’s Q Model and Cash Flows from Operating and Investing Activities in Listed Companies in Iran," Zagreb International Review of Economics and Business, Faculty of Economics and Business, University of Zagreb, vol. 12(1), pages 71-82, May.
    Full references (including those not matched with items on IDEAS)

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