The Value of Financial Flexibility, Investment Efficiency and Adjustment Speed of Working Capital

The purpose of this research is to investigate the relationship between the value of financial flexibility, investment efficiency and adjustment rate of working capital. This research is an applied from the perspective of the purpose and descriptive-correlation research. The research community is listed companies in Tehran Stock Exchange that based on systematic elimination sampling method, 118 companies have been selected as statistical sample during the years 2010-2016. The multivariate linear regression has been used to test the research hypotheses. The results of the research show that there is a positive and significant relationship between the value of financial flexibility with the efficiency of investment in net working capital and adjustment rate of working capital. And companies have focused on the level of financial flexibility value in decisions to optimize their investment and working capital policies. This can, in the long term, enhance the financial flexibility value of the company and make investment opportunities more profitable. The relationship between the value of financial flexibility and the adjustment rate of working capital in firms that are financially more restricted is higher. And this relationship is lower in companies with no financial constraints and there is no non-linear relationship (U shaped) between working capital and firm performance.