This research aims to investigate the impact of working capital policy on stock price crash risk during 1388-92.

To test the research’s hypotheses, the Logistic regression and correlation coefficient and also t-test and to data analysis and testing the research’s hypotheses, the EVIEWS software are used.

The results suggest that the company management can, by using various strategies related to working capital, affect the company's liquidity and these strategies can affect the risk and returns of the companies and thus are likely to affect stock prices fall. Therefore, the presence of investment knowledge and experience of investors cause them to better understand the relationship between risk and return and make more correct decisions.