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The main objective of this study was to investigate the relationship between WCM efficiency using the DEA approach and the actual performance of Iranian manufacturing firms. 1440 company year observations in 5 industries for the period 2006 to 2021 were used for the analysis. In the present study, the DEA input-oriented BCC model was used. This study also used four input and two output variables to calculate WCM efficiency. The study results showed a positive and significant relationship between working capital efficiency, company size, and company growth opportunities with their performance. The results also showed a negative relationship between leverage and performance. The results of additional tests showed a non-linear inverted U-shaped relationship between working capital efficiency and performance.
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