The Empirical Analysis Of Financial Constraints、Working Capital Managerial Policy And Enterprise Value

Working capital management is the one of the core of financial management and it deeply affects company’s mobility、profitability and the effect of company’s long strategies. Efficient working capital management is an important safeguard to survive, develop and achieve corporate strategic objectives. The same as enterprise long term Capital management and decision, working capital management also needs scientific and normative managerial policy to guide practice as the same as company’s long financial management. There is only an efficient working capital managerial policy can reflect not only the grasp of the quantity and the promotion of the quality, but also can keep company’s liquidity and promote company’s profit. However, in practice, the improvement of the efficient and effect of working capital management is seriously restricted owing to listed companies are short of specific working capital managerial policies. In theory study, on the one hand, there is a big gap between Chinese and foreign on the empirical study of working capital managerial policies, on the other hand, there are still large differences from the few existing research findings.In view of these, based on the literature review and theory outlined, the article as financial constraints as an entry point and as the 2010-2013 China’s A-share listed companies in the manufacturing industry as the research object, using multivariate statistical regression method empirical analysis the relationship between working capital investment policy soundness, working capital financing policy soundness, working capital portfolio policy soundness and enterprise value when companies face financial constraints. The results show that:(1) when the company is facing financial constraints, there is a significant positive correlation between working capital investment policy soundness and enterprise value;(2)Due to the short-term debt financing can pass financing pressure to stakeholders, making enterprise financing costs reduced, and thus whether the enterprise is in a state of financial constraints or not, enterprises can take advantage of short-term debt financing to reduce the cost of capital;(3)When enterprises are in special state of financial constraints, taking a high degree of robustness working capital investment and financing portfolio management policy will promote the upgrading of enterprise value.These results suggest that in the process of value-oriented management of short-term financial management, enterprises should establish a correct concept of working capital, develop working capital financing policy in line with their actual conditions, full attention and dynamically adjust their working capital management policy. In addition, the findings also show that financial constraints should be included in the scope of the study while empirical study the relationship between working capital investment policy and portfolio management policy and enterprise value.