University of Isfahan Journal of Asset Management and Financing 2383-1189 2 1 2014 05 22 The Relationship between Ownership Concentration and Board Structure with Working Capital Management Efficiency The Relationship between Ownership Concentration and Board Structure with Working Capital Management Efficiency 113 128 19876 FA Fatemeh Rahmani Shahid Chamran of University Seyed Ali Vaez Nasrin Ghanavati Shahid Chamran of University Seyed Ali Vaez Shahid Chamran of University Mohammad Hosein Ghalambor Shahid Chamran of University Journal Article 2016 06 14 This paper investigates the relationship between some governance indicators such as ownership concentration (shares hold by five major shareholders) and board structure (board size and proportion of non-executive directors) with working capital management efficiency. In order to better assess the working capital management, four common proxies are used: Days of Accounts Receivables (D_AR), Days of Inventories Conversion (D_INV), Days of Accounts Payables (D_AP), and Cash Conversion Cycle (CCC). In this regard, research hypotheses were tested based on 113 firms listed on the Tehran Stock Exchange during the period of 2007-2013 and by using panel data models. The results indicate that level of ownership concentration has a significant negative relationship with D_INV and CCC, but does not have a significant relation with D_AR and D_AP. In other word, increasing the percentage of shares hold by five major shareholders, due to raising the level of shareholder monitoring, and by reducing the length of D_INV and CCC, can lead to the increase of efficiency of working capital management. While, board structure, except with D_AR, does not have a significant relation with the other proxies of working capital management. This reflects the weakness and inefficiency of board controls and monitoring on working capital policies of Iranian firms. This paper investigates the relationship between some governance indicators such as ownership concentration (shares hold by five major shareholders) and board structure (board size and proportion of non-executive directors) with working capital management efficiency. In order to better assess the working capital management, four common proxies are used: Days of Accounts Receivables (D_AR), Days of Inventories Conversion (D_INV), Days of Accounts Payables (D_AP), and Cash Conversion Cycle (CCC). In this regard, research hypotheses were tested based on 113 firms listed on the Tehran Stock Exchange during the period of 2007-2013 and by using panel data models. The results indicate that level of ownership concentration has a significant negative relationship with D_INV and CCC, but does not have a significant relation with D_AR and D_AP. In other word, increasing the percentage of shares hold by five major shareholders, due to raising the level of shareholder monitoring, and by reducing the length of D_INV and CCC, can lead to the increase of efficiency of working capital management. While, board structure, except with D_AR, does not have a significant relation with the other proxies of working capital management. This reflects the weakness and inefficiency of board controls and monitoring on working capital policies of Iranian firms. https://amf.ui.ac.ir/article_19876_52ffa3730b3c7a625e716ad4ea782c88.pdf