Research On Working Capital Management And Corporate Performance

In this paper, 62 manufacturing listed companies in the area of Jiangsu and Zhejiang which listed in the SMEs board are selected as the research object, and select the sample companies’ financial data from year 2009 to 2013.This paper around working capital management theory, and develops an empirical study to research the relationship between working capital management and corporate performance from working capital management policies and working capital management efficiency perspectives.First, this article reviews the relevant literatures that research working capital management policy, working capital management efficiency and the relationship between the working capital management and corporate performance. And then research ideas of this paper are formed, and the related research is improved and complemented. Then the theoretical basis for working capital management and corporate performance is carded, and the connotation of working capital and corporate performance are explained, the contents of working capital management are theoretically analyzed. On the basis of the results of previous studies, this paper combines the actual situation of SMEs board listed company in Jiangsu and Zhejiang to determine the research hypothesis. It provides bedding for empirical research.Secondly, on the basis of theoretical research, this article descriptive analysis the management situation of the sample companies’ working capital management from two perspectives of the working capital management efficiency and the working capital management policy. The analysis revealed: the sample companies’ working capital investment policy is robust at this stage, while the financing policy is more radical. However, due to external factors, companies began to focus on strengthening working capital management, and strive to improve the radical degree of the working capital investment policy and enhance robustness of the financing policy. Meanwhile, the sample companies’ business activities working capital turnover has increased, the efficiency of working capital management continues to worsen,the number of the working capital increases, the companies’ capital allocation tilted to business activities. From internal operations, the fund has a tendency to shift from sourcing channels to produce channels and marketing channels. By factor analysis, the article comprehensive studies the sample companies’ profitability capacity and liquidity capacity to form a comprehensive performance evaluation index. This paper tests the existence of multicollinearity through the Pearson correlation analysis. Then we research the relationship between the working capital management variables and the corporate performance by the multiple linear regression models.The results show that the aggressiveness degree of the working capital investment policy,the aggressiveness degree of the working capital financing policy, the operating activitiesworking capital turnover, the marketing channels working capital turnover are negative correlation with the corporate performance. The purchase channels working capital turnover is positive correlation with corporate performance. The production channels working capital turnover is irrelevant to the corporate performance. Finally, according to the problems of the sample companies’ working capital management, this paper puts forward some opinions and suggestions about how to optimize working capital policy and adjust working capital management efficiency in order to improve the corporate performance.