Rea Press null Rea Press3009-44613009-4461 Rea Press https://doi.org/10.22105/tqfb.v1i1.18 Research Article Working capital, Return on assets, Return on equity, Capital Market Working Capital Management and Profitability of Banks: Evidence from the Iranian Capital MarketWorking Capital Management and Profitability of Banks: Evidence from the Iranian Capital Market Kaviani Meysam Department of Management and Accounting, Karaj Branch, Islamic Azad University, Karaj, Iran Kaviani Kaveh Department of Financial Management, Karaj Branch, Islamic Azad University, Karaj, Iran Kaviani Morteza Department of Accounting, Shafagh Institute of Higher Education, Tonekabon, Iran 05 2024 01 05 2024 1 1 © 2024 Rea Press 2024

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 Working Capital Management and Profitability of Banks: Evidence from the Iranian Capital Market

The main objective of this research is to investigate the relationship between working capital management and the profitability of banks in the Iranian capital market. To achieve this objective, financial data from thirteen banks have been used in a balanced panel format over the period from 2013 to 2021. The dependent variable, profitability, includes two profitability indicators: Return on Assets (ROA) and Return on Equity (ROE). working capital management is measured using the cash ratio and Cash Conversion Cycle (CCC). In this research, hypothesis testing has been carried out using fixed-effect regressions and Generalized Method of Moments (GMM) estimations. The results indicate that there is no significant relationship between the cash ratio and profitability, while there is a positive and significant relationship between the CCC and profitability.

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