Design and validation of capital efficiency model in Tehran stock companies

Document Type : Research Paper


1 Department of Industrial Management, Science and Research Branch, Islamic Azad University, Tehran, Iran

2 Department of Financial Management, Kashan Branch, Islamic Azad University, Kashan, Iran

3 Department of Industrial Management, Kashan Branch, Islamic Azad University, Kashan, Iran



This research has been investigated with the aim of modelling and validating capital efficiency in listed companies. The statistical community is in the meta-analysis section, internal and external research with research keywords. The research methods used are meta-analysis, interpretive structural stratification and confirmatory factor analysis. The sampling method in the meta-analysis section is purposeful and articles with unique keywords in the current research field have been used. The statistical population in the confirmatory factor analysis section was the experts of the Stock Exchange Organization, who were selected by simple random sampling. For confirmatory factor analysis in this research, 250 people participated in the questionnaire. In this research, by using the meta-analysis method and reviewing the articles in question, first, the effective components of capital efficiency in listed companies were identified. According to the importance of each variable in the financial statements of listed companies, the model was stratified, and then with The use of confirmatory factor analysis the paths related to each variable were investigated. The results show the appropriate fit of the proposed model and at the 95% level, all paths of the proposed model are approved.


[1] E. Abbaspour and M.S. Orhan, Investigating the interactive effect of capital efficiency and accounting conservatism on the cost of capital in Tehran Stock Exchange and Istanbul Stock Exchange, Product. Manag. 12 (2017), no. 4(47), 213–233.
[2] A.S.A. Alarussi, Financial ratios and efficiency in Malaysian listed companies, Asian J. Econ. Bank. 5 (2021), no. 2, 116–135.
[3] T.M. Almomani, M.A. Almomani and M.I. Obeidat, The relationship between working capital management and financial performance: Evidence from Jordan, J. Asian Finance Econ. Bus. 8 (2021), no. 6, 713–720.
[4] B. Al-Najjar, The financial determinants of corporate cash holdings: Evidence from some emerging markets, Int. Bus. Rev. 22 (2013), no. 1, 77–88.
[5] S. Alves and J. Martins, The impact of intangible assets on financial and governance policies: A simultaneous equation analysis, J. Appl. Finance Bank. 4 (2014), no. 1, 61.
[6] S.G. Anton and A.E. Afloarei Nucu, The impact of working capital management on firm profitability: Empirical evidence from the Polish listed firms, J. Risk Financ. Manag. 14 (2020), no. 1, 9.
[7] F. Belloc, E. Laurenza and M. Alessandra Rossi, Corporate governance effects on innovation when both agency costs and asset specificity matter, Ind. Corp. Change 25 (2019), no. 6, 977–999.
[8] H. Bhattacharya, Working Capital Management: Strategies and Techniques, PHI Learning Pvt. Ltd., 2021.
[9] A.H. Erza, Investigating the mediating role of intangible assets on the relationship between managerial overconfidence and investment productivity, Invest. Knowledge 9 (2019), no. 33, 163–178.
[10] M. Ghahraman Ezady and M. Behnameh, The relationship between intangible assets and market value of companies, the pharmaceutical industry: Case study of Tehran Stock Exchange, Nat. Conf. Account. Manag., Inst. Int. Education and Research Kharazmi Safasahr, 2013.
[11] I.E.K. Goker, An analysis of working capital efficiency of companies listed on sustainability index by index method, J. Econ. Finance Account. 7 (2020), no. 2, 94–102.
[12] Y. Hassas Yeganeh, M. Marfou and M. Naqdi, The relationship between profit forecasting accuracy and investment efficiency, Financ. Account. Empir. Stud. 14 (2016), no. 54, 51–72.
[13] A. Hidayati, Z. Fanani, K. Prasetyo and A.W. Mardijuwono, The impact of intangible asset on firms competitive advantage and market value: Empirical examination from emerging market, Proc. Bangkok Conf., 2012.
[14] S.B. Husnah, S. Aisjah, and A. Djumahir, Intangible assets, competitive strategy and financial performance: Study on rattan SMEs in Paulu city of Central Sulawesi (Indonesia), IOSR J. Bus. Manag. 7 (2013), no. 4, 14–27.
[15] P.M. Madhani, Study on the corporate governance and disclosure practices of tangible assets and intangible assets-dominated firms and their relationship, IUP J. Corp. Govern. 14 (2018), no. 2, 7–29.
[16] G. Marzo, Accounting for intangibles and the theories of the firm, Available at SSRN: or
[17] H.H. Mirza and T. Azfa, Ownership structure and cash flows as determinants of corporate dividend policy in Pakistan, Int. Bus. Res. 3 (2010), no. 3, 210–221.
[18] A. Mohammadpour, A. Zabihi and K. Faghani Makrani, The effect of capital productivity management on capital asset pricing models with emphasis on life cycle, Product. Manag. 14 (2019), no. 1(52), 171–194.
[19] H. Mohammadzadeh Saleteh, Y. Badavar Nahandi, and M. Ismailnejad, Investigating the effect of the company’s management system on the company’s value with an emphasis on the efficiency of investment in companies admitted to the Tehran Stock Exchange, Account. Audit. Rev. 22 (2014), no. 1, 125–142.
[20] M. Moradzadeh Fard, Management ability, investment efficiency and risk of future stock price fall, Financ. Account. Empir. Stud. 13 (2015), no. 50, 33–64.
[21] R. Norvaisiene, The impact of capital structure on the performance efficiency of Baltic listed companies, Eng. Econ. 23 (2012), no. 5, 505–516.
[22] M. Russell, Capitalization of Intangible Assets and Firm Performance, The University of Queensland, 2014.
[23] M. Sarstedt, L. Radomir, O.I. Moisescu, and C.M. Ringle, Latent class analysis in PLS-SEM: A review and recommendations for future applications, J. Bus. Res. 138 (2022), 398–407.
[24] M.H. Satish and S. Mansouri, A comparative study of corporate governance mechanisms in financially distressed and non-distressed companies admitted to the Tehran Stock Exchange, Financ. Res. 16 (2013), no. 1, 99–112.
[25] Y. Sogham and A. Javadinia, Investigating the moderating effect of management ability on the relationship between investors’ sentiments and accounting conservatism, Account. Audit. Rev. 28 (2020), no. 1, 102–134.
[26] M.V.M. Zittei, G.D. de Moura, and N. Hein, Analysis of the relation between Intangible Assets and levels of Corporate Governance of listed companies in BM&FBOVESPA, Rev. Cien. Hermes 14 (2015), 91–117.

Articles in Press, Corrected Proof
Available Online from 22 February 2024
  • Receive Date: 27 July 2023
  • Accept Date: 04 October 2023