The role of Financial Constraints in Determining the Relationship Between Working Capital and Financial Performance of Companies Accepted in the Capital Market of Iran

The purpose of corporate finance theories is to determine the best investment strategies for a business unit, which includes long-term and short-term tactics and strategies. Working capital management is a part of short-term planning that aims to find an optimal trade-off between profitability and risk. The purpose of this research is the role of financial constraints in determining the relationship between working capital and financial performance of companies accepted in the capital market of Iran. The information required for this study is taken from the financial statements of 141 companies in the period 1391-1400. In terms of purpose, the research is part of applied research and the research method is correlational in terms of nature and content, and panel analysis has been used to analyze the hypothesis. The results of the research hypotheses test showed that there is a negative and significant relationship between working capital and financial constraints with the company's financial performance. The results also showed that the moderating role of financial constraints on the relationship between working capital and financial performance, although negative, is not significant.