The main objective of this research is to study the effect of investors’ reaction to circulation capital in Tehran Stock Exchange. In this research, the circulation capital as independent variables and the reaction of investors (unusual return) have been considered as dependent variable and multi variable regression as well as the‘t’ student statistical test have been used to test hypothesis/supposition. The statistical society of research was the whole accepted companies in Tehran stock exchange during 2006 until 2011and the statistical sample volume is also equal to 120 companies considering the sieving method and after eliminating the outlier observation. The results obtained by the analysis of 120 companies during 2006 until 2011 at satisfactory level of 95% indicate that the reaction of the investors to circulation capital in the companies with higher financial leverage is lower than all other companies.
1- Abzry,M ; Shahshahani,M ; Jami,H.(2003). Circulation capital Strategies The pharmaceutical companies, Journal of Administrative Sciences and Economic university asfahan.
2-Anand,M & Prakash gupta.(2002). Working capital performance of corporate india: An Empirical for the year 2000-2001. Management and accounting research January.pp:46-81.
3- Amry Asrmy,M.(2001). Examine The information content of earnings Circulation capital and cash flow, Masters thesis Tehran university, School of Management,32.
4-Fama.A & Ferench.S.(1981). Efficiency of working capital management. Financial management, no.37,p5.
5-Grablowsky, B. J.(1976). Mis management of Accounts Receivable by small Business. Journal of Small Business,vol.14,pp:23-28.
6- Mahmudi,V;Shyrkvnd,S;Salary,M.(2011). The reaction of investors to changes in dividends of Listed companies in Tehran stock Exchange. Vision Financial Management and Accounting, vol,1,pp:115-130.
7- Malikinia,N ; Asgari,H ; Qizilbash,A.(2011). The Relationship Between Circulation Capital Strategies Profitability Criteria automotive and mineral Tehran Stock Exchange.Journal of monetary Economics, Financial, vol.18 , NO.2 , PP:140-162.
8- Moss,J.D.andstine ,B.(1993). Cash conversion cycle and firm size: a study of retail firms, managerial finance, vol.19, NO.8, PP: 25-34.
9- Rvdpshty,R ; Kiai,F ; Kiai,A.(2008). Review and explanation of Circulation capital in Listed companies in Tehran stock Exchange, Knowledge of Accounting Research.
10-Setayesh,M. H; Mansoori,O.(2010). The relationship between the various components of working capital and profit enhancing Accounting firms Listed in Tehran Stock exchange. Journal of Accounting Auditing Financial.pp:1-24.
11- Haugen,R.A.(1997). Modern investment Theory.prentic Hall .inc.USA,pp:650-652.
Amini, J., & Mohammadi, A. (2014). Study of investors’ reaction to circulation capital/money (Study of the Tehran Stock Exchange). International Journal of Academic Research in Business and Social Sciences, 4(2). 262-268.
Copyright: © 2014 The Author(s)
Published by Human Resource Management Academic Research Society (www.hrmars.com)
This article is published under the Creative Commons Attribution (CC BY 4.0) license. Anyone may reproduce, distribute, translate and create derivative works of this article (for both commercial and non-commercial purposes), subject to full attribution to the original publication and authors. The full terms of this license may be seen at: http://creativecommons.org/licences/by/4.0/legalcode
