The Investigating of the Relation between Working Capital and Performance with Considering Financial Constraints in TSE

In this Letter, the impact of working capital management on the performance of listed companies due to financial constrains in Tehran stock Exchange (TSE) from 2009 until 2013 has been evaluated. In this study, we have considered NTC as a measure of low level of working capital, squared NTC as a measure of high level of working capital, Z-SCORE as a measure of financial constraints, and Tobin Q as a criterion for performance. Also size, financial leverage, growth and ROA have been used as a control variable. Research results indicate that there is no significant relationship between different levels of working capital and performance due to financial constraints.