The Impact of Corporate Governance on Cash Management Efficiency in the Industry of Machinery and Equipment

The corporate governance system is a response to the problem of agency which is caused bythe separation of control from ownership . After representing agency theory, agency relationswere widely affect the variety of topics in financial literature and gradually, especially with theemergence of financial scandals and bankruptcies of companies and financial corruption thatoccurred in the late twentieth century, corporate governance system Discussion has also attractedmore attention.In this study, the effects of corporate governance on the efficiency of cash management isevaluated in machinery and equipment industry. The sample consisted of 15 companies listed onthe Tehran Stock Exchange in machinery and equipment industry in 1385- 1393, which wereselected through screening. Hypothesis test was conducted through multiple regression andGeneralized Least Squares (GLS) method. The results of this study in machinery and equipmentindustry indicate a significant positive correlation between corporate governance andmanagement components performance of the cash conversion cycle.

Keywords:

corporate governance , management of agency problem , the cash conversion cycle