Research On The Influencing Factors Of Working Capital From Channels Perspective

Working capital is the circulate blood of a company,Working capitalmanagement is an important content of enterprise financial management, Workingcapital management performance will have a direct impact on the profitability ofenterprises. So, the research of working capital management have be getting more andmore attention by the theorists and the practice. Effective management of workingcapital is inseparable from the analysis of the related influence factors of workingcapital. According to the previous study,There are internal and external factors thatInfluence working capital. Internal factors mainly include: The business cycle, theenterprise sales growth, return on assets, Leverage, Industry, Enterprise scale;External factors mainly include: The degree of economic boom (GDP growthrate),Interest rate, Inflation etc. There are also many arguments for the definition ofthe concept of working capital, But we think classify working capital from channel’sangle is more rational.This paper adopts the method of theory analysis and empirical researchcombined according to previous research experience. Listing Corporation in China’smanufacturing industry as the research object, working capital which was classifiedby Channels as the dependent variable, The growth rate of sales, total assets, operatingcash flow, return on assets, assets and liabilities rate and inflation rate as variables. Analysis the relationship between working capital and the impact of various factors ofeach channel from the theoretical perspective at first, Then build model, to verify thehypothesis using data. The empirical test and analysis of the results showed that: thegrowth rate of sales, assets scale, assets and liabilities rate has a significant impact onthe purchasing channel working capital; Growth rate of sales, assets scale, operatingcash flow, PPI on production channel working capital have a significant impact; assetscale, operating cash flow, return on assets, assets and liabilities rate had significanteffect on the marketing channels of working capital. Rate of return on assets, asset-liability ratio, asset size of the business activities of the working capital hassignificant effect. Effects of growth rate of sales, total assets, operating cash flow,return on assets, assets and liabilities rate and inflation rate are significant to thefinancial activities of the working capital. Comprehensive various factors and therelationship between each channel working capital, we can see that, the relationshipbetween enterprise asset scale, asset-liability ratio and the various channels ofworking capital are significant. Financial activities are susceptible to variousinfluence factors. Significant relationship between inflation and production channels,marketing channels and financial activities of the working capital. And all for thepositive correlation. There is no significant correlation between purchasing channelworking capital and operating working capital and the producer price index. That is tosay, inflation will result in greater impact on the financial activities of the workingcapital, and has a great influence on the business activities of the working capital not.This paper discusses and testing various factors especially enterprise backgroundof working capital management, aims to reveal the relationship between variousfactors and changes in working capital requirements, for the timely adjustment ofworking capital policy direction, in part to improve efficiency in the use of funds, toavoid excessive funds in low-yielding working capital, on the other on the one hand,and the prevention of payment crisis, lower opportunity cost, make the enterprisecomprehensive capital income maximization. Based on the above empirical results,we can make the reverse operation, for example, with the increase in the rate of assetsand liabilities, the enterprise working capital requirements will be reduced, so,enterprises can be cautious working capital policy appropriate to the radical directiontrimming, other influencing factors and so on; if there are changes in contrast, can beadjusted in the opposite direction.