Investigating the Non-Linear Relationship between Working Capital Management with Performance and Investment in Companies Listed in Tehran Stock Exchange

The objective of this research is studying the effect of working capital management on the performance and investments. To do so, we gathered and analyzed panel data of 155 stocks listed in Tehran Stock Eschange during 2010-2014 using multivariate regression. The results show a significant relationship between working capital management and performance (market return) of the stocks. In addition we found a non-linear relationship between working capital management and operationa performance (ROA) of the firms listed in Tehran Stock Exchange. Finally the results show a negative relationship between working capital management and investment in high level of working capital.