The Influence of Investment on Working Capital, Considering Restrictions oThe Influence of Investment on Working Capital, Considering Restrictions of Financing on Cash Flow

This study examines the influence of investment on working capital، based on working capital management، that consists of four variable، inventory turnover، accounts receivable turnover، accounts payable turnover، and cash flow turnover، considering restrictions of financing on sensitivity of cash flow. The regression models and generalized method of dynamic moments panel is used for data analysis. Time period of this study is from 2006 to 2011. Sample of this study consists of 70 companies listed in Tehran Securities Market، selected by systematic elimination method. The results indicate that from working capital management، collection period has apositive and meaningful impact on sensitivity of cash flow considering financing restrictions; but، accounts payable turnover، inventory turnover، cash turnover have no meaningful impact on cash flow sensitivity considering financing restrictions.