The study aimed to demonstrate thedesigning an integrated proposal model that combines the quantitative and behavioral perspectives using Risk-adjusted return on capital (RAROC) and Behavioral finance (BF) to manage the working capital risk in the industrial companies listed on the Palestine Stock Exchange. Based on the literature and financial indicators in this field On the one hand, and behavioral on the other, in addition to measuring the level of behavioral finance patterns (Herd behavior, Overconfidence, loss aversion, Risk tolerance, self-serving bias, Representativeness, and Mental accounting) of the working managers With these companies.

The study adopts descriptive analyticalmethod, and the questionnaire was used as a tool for gathering information. The sample consisted of (45) items distributed to managers working in industrial companies listed on the Palestine Stock Exchange. (78%), in addition to analyzing the financial statements of the target companies during the period from 2008 to 2017 (Ten years) as a time frame for the purpose of finding the relationship between the variables of the study during this period by (120) for each variable of the study variables Use statistical analysis software (SPSS), and (E-views), and (EXCEL) for input, processing and analysis of data.

The study  hypotheses are as follows: There is no statistically significant effect by using Risk-adjusted return on capital and behavioral finance in its patterns, and between working capital risk management and its variables (Financial risk management, working capital components Risk management, and working capital risk management) Palestine Stock Exchange.

The study  reached the following findings:That managers' practice of behavioral finance patterns and prejudices was available with "high" support ratings. The relative arithmetic mean was(71.4%).There is a significant effect between the return on capital of risk and the management of working capital risk with its variables. (41.6%) of the change, and there is a significant effect of behavioral finance on its patterns, and management of the working capital risk with its variables, (59.2%) of the change, there is an effect of significant significance in terms of the use of risk-adjusted capital return, behavioral financing of its types, and the management of working capital risk with its variables. Some (69.8%)of the change is explained.

   The study  recommended the followings: The need for industrial firms to adopt tools; new financial models and their complementarity that reduce and reduce risk; such as theRisk-adjusted return on capital RAROC approach, behavioral finance theory, the study of behavioral finance theory does not necessarily mean that the traditional theory should be abandoned; financial managers should take advantage of all kinds of information and possible analysis when making a decision; without overlooking the psychological factors that can affect the rationality of decision making, Of the risks, the need to integrate the operations of cash management, accounts receivable, creditors, inventory together. The researcher recommends Palestinian industrial companies to balance between investment and financing policies in the management of working capital, to ensure the compatibility between liquidity and profitability. Based on the findings of the study, the researcher recommends adopting the proposed integrated model for working capital risk management.