The Effect of Family Ownership, Cost Leadership Strategy, Managers' Narcissism, and Social Responsibility on the Speed of Working Capital Adjustment

Articles in Press

Document Type : Research Paper

Authors

1 Associate Professor, Accounting Department, Payame Noor University, Tehran, Iran.

2 MA in Accounting, Payame Noor University,

3 Zanjan Science & Research C., Islamic Azad University

10.22059/ijms.2026.403212.678082

Abstract

Purpose: This research investigates the impact of family ownership, cost leadership strategy, managerial narcissism, and corporate social responsibility on the speed of working capital adjustment.

Design/Methodology/Approach: Data from 166 Tehran Stock Exchange (TSE)-listed companies from 2010 to 2023 were used to test the research hypotheses with multiple linear regression.

Findings: The results showed that the speed of working capital adjustment varies significantly across industries, reaching 79% in industries with a high presence of peer firms, whereas 39% in the machinery and automotive sectors. In addition, family ownership, corporate social responsibility, cost leadership strategy, and managerial narcissism positively increased the speed of working capital adjustment.

Originality/Value: Managers in family companies are more interested in preserving the company's capital and reputation, and they can make better investments toward long-term goals and maximize value for investors by optimizing short-term capital. Moreover, applying the cost management strategy can increase the company's revenues. Since adherence to social interests is highly important, it can yield higher profits in terms of reputation and income. In all the above-mentioned cases, managers' role as final decision-makers cannot be ignored, and their behavioral biases, such as narcissism, can affect their decisions.

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Interdisciplinary Journal of Management Studies

Articles in Press, Accepted Manuscript
Available Online from 23 May 2026

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