Study On Performance Evaluation Of Chinese Listed Companies’ Working Capital Management

Both from a theoretical and from a practical point of view, the performance evaluation has always been a controversial problem in the management, the field of working capital management is no exception. Because the correct evaluation of the working capital management performance is of considerable significance to enhancing the management level of working capital of listed companies in China, this paper trys to, by the analysis of the status quo of working capital management performance evaluation, combining with the basic theory of modern financial management, work out a idea of working capital management performance evaluation of the Chinese listed companies, and commit to building a reasnable and comprehensive evaluation system, in order to obtain a more objective and accurate the effect of evaluation.While building a new evaluation system, the designing of the index system and choice of evaluation method is the core. While designing the index system the paper has taken a comprehensive comparative analysis method with the traditional indicators, basing on the advantages of the traditional indicators, local shortage and the overall lack, corrected the traditional indicators, combining with the characteristics of working capital management of China’s listed companies, but also added some of the new and necessary evaluation, such as efficiency on working capital increasing, long-term financial security rate, cash return rate of working capital, increase efficiency of the enterprises’ social contributions, the efficiency of social accumulated growth, net assets rate of working capital, so that the evaluation index system is richer and more comprehensive. On the choice of evaluation method, basing theory-oriented of the3E theory, risk trade-off theory, and so on. We work out a architecture on the four dimensions of economy and efficiency and effects and safety, supplemented by the statistical analysis of the factor analysis method and entropy method, and establish objectively a comprehensive index calculation function of the performance evaluation, so that a comprehensive evaluation system is able to obtain quantitative evaluation results, while the use of the progressive average and the efficiency coefficient of grade evaluation method which make it possible to change the quantifed results directly into the fractional to achieve the purpose of visual comparisived and evaluating working capital management performance of listed companies. The papers finally selected randomly the culture spread industry for the data sample of the empirical analysis and obtained empirical results consistent with the first target.