Test of Stakeholders Theory in Working capital Policy

Understanding the factors affecting the level of cash holding is important from the perspective of determining the capital policy of the company. In the present study, the effect of stakeholder theory in working capital policy is investigated. Therefore, we used cash holding and liquidity index (as the proxy of working capital) and employee welfare (as the proxy of stakeholder theory) in this research .The research question of the present research is whether the level of cash holding and liquidity of the company is influenced by the level of welfare of the employees of the company. Statistical population In the present study, 168 companies of Tehran Stock Exchange were selected as the sample of the study. In order to perform statistical analysis in this study, linear regression method with panel-effect method in Eviews econometrics software was used. Findings from the analysis of the research data show that the level of cash holding and cash flow of the company is a direct function of the level of welfare of the company employees