Working Capital Management, Investment and Financing Constraints in Companies Listed on the Tehran, Iran Stock Exchange

Abstract

Since the level of fixed investment is costly for industries, they alw ays search for ways to maintain it; however, financing constraints pre vent the realization of this goal. A panel of over 134 stock firms ove r the period 2005-2011 was used to study the linkages between financin g constraints and investment in fixed and working capital. To this end we have analyzed the relation between tangible fixed assets, investme nt, cash flow, tangible fixed assets, working capital and fixed invest ment. In this studies we changes variables and hypotheses. The results obtained indicate that an active management of working capital may he lp firms alleviate the effects of financing constraints on fixed inves tment [9].