Working Capital Strategies and Performance: An Empirical Evidence of Life Cycle Theory

This research attempts to focus on the relationship between working capital strategies and performance and the effect of life cycle stages on this relationship in Tehran Stock Exchange listed companies over the period 2002 to 2012. Results indicate that life cycle stages affected on the relationship between working capital strategies and performance. It means that under general circumstances (regardless of the life cycle), no relationship exists between working capital strategies and performance; but, when the life cycle stages are taken into consideration, there is in a meaningful relationship between working capital strategies and performance in the maturity stage; moreover, to offer an opinion on growth & declining stages would be an impossible task, due to the non-reliability of statistical data collected.

Performance, Working Capital Strategies, Life Cycle Theory.