Evaluation of relation between working capital management and financial performance indexes of the companies accepted in Tehran stock exchange using decision tree data mining technique

Working capital is known as life giving force for any economic unit and its management is considered among the most important function of corporate management. The present research studies the relation between working capital management and financial performance indexes of the companies accepted in Tehran Stock using data mining techniques. Collected data for this research were extracted from financial statements of companies listed in Tehran stock market from 2007 to 2011. Dependant parameters of the research are return on asset (ROA), return on shareholders equity and TobinQ index which are considered as the financial performance indices of the companies. Decision Tree Data Mining. was used for testing the hypotheses. Research results showed that it is possible to predict the financial performance indexes of the companies in Tehran Stock Exchange Market through elements of working capital management and Decision Tree Data Mining. Obtained results showed that the Decision Tree Data Mining is adquetly accurate in prediction of financial performance indexes.