Accounting and Auditing Research

Accounting and Auditing Research

The effect of risk management on the speed of achieving optimal working capital: the generalized moments approach (GMM)

Articles in Press

Document Type : Original Article

Authors
Farshid Ahmadi Farsani 1
Aliakbar Alahyari 2
Rezvan Habza 3
1 Assistant Professor of Accounting Department, Payam Noor University, Tehran, Iran
2 alahyari@pnu.ac.ir
3 PhD student in accounting, Islamic Azad University, Yasouj Branch, Yasouj, Iran.
10.22034/iaar.2025.474904.1759
Abstract
Abstract

Purpose: The current research seeks to track the impact of risk management on the speed of achieving optimal working capital.

Method: In this regard, a sample consisting of 124 companies accepted in the Tehran Stock Exchange during the years 2010-2022 was selected with the help of the systematic elimination model and finally to test the research hypotheses from a multivariate regression model with the generalized moments approach (GMM). It was taken advantage of.

Findings: In the results of the research hypotheses, it was observed that risk management increases the speed of achieving optimal working capital. Also, the speed of adjustment of working capital in the sample companies is about 65%, which shows that the companies dynamically cover the same amount of hexadecimal between the actual and optimal working capital.

Conclusion: The current research provides useful evidence for company managers and capital market agents that optimal working capital can be achieved faster with comprehensive risk management.



Keywords: Working capital adjustment speed, Risk management, Liquidity conversion cycle.
Keywords
Working capital adjustment speed
Risk management
Liquidity conversion cycle

Subjects

Accounting and Auditing Research

Articles in Press, Accepted Manuscript
Available Online from 09 February 2026