Optimal usage of cash flow and financial performance of manufacturing firms in the Tehran Stock Exchange: estimating and modeling

Cash Flow Management is one of the main factors in the survival of the business firm. The cash flow management, so that to keep companies economically efficient and effective is the main goals of this study. The study generalized estimating equations (GEE) and used financial statements as midterm extracted. The sample consisted of 69 companies present in the Tehran stock exchange, out of 313 companies' selected using screening between 2011 to 2013. Using the extracted data and Panel formed longitudinal data for a period of three months; survey data for more than one year (six quarter) took place. The criteria to compare are Coefficient Determination Result from Fitness models. Results of the study show that the reduction of days of inventory outstanding (DIO) improves the financial performance of manufacturing firms has reduced the average time keeping inventory because the shorter the time of inventory turnover and finally increases in the performance of the company.