An Empirical Study On The Correlation Between Working Capital Management And Enterprise Value Of Listed Real Estate Companies In China

As an important activity of enterprise financial management,working capital management has a direct impact on the value of the enterprise,and it also affects the success or failure of enterprise management.At present,many enterprises have not set up working capital management system,how to scientifically formulate working capital management policies to promote the healthy and stable development of China's enterprises,enhance the enterprise value,is an urgent problem to be solved.The real estate industry belongs to the capital-intensive industry,and its working capital has the characteristics of large occupation,long turnover period,strong industrial relevance,and easy to be influenced by policies and regions.Therefore,it is necessary to strengthen the research on the working capital management of real estate enterprises.According to the working capital management characteristics of the real estate industry,based on analyzing the working capital management theory and enterprise value theory.This paper uses empirical analysis method to study the relationship between the operating capital management and the enterprise value of China's real estate industry from two aspects:the management performance of the operating fund based on the channel and the management of the operating capital holdings.The study found that there is a significant negative correlation between the working capital turnover period of real estate business activities and the enterprise value.Procurement,production and marketing channels of working capital turnover are significantly negatively correlated with the value of the enterprise.Similarly,there is also a significant negative correlation between the working capital turnover period of financial management activities and the value of the enterprise.The degree of real estate operation capital abundance and enterprise financial performance are inverted U-type relationship.According to the analysis results,the article concludes that improve working capital management performance and maintain reasonable working capital holdings are beneficial to realize the enterprise value increment.Finally,this paper puts forward some countermeasures and suggestions for improving the value of real estate enterprises in China.It is hoped that the relevant theoretical framework will be perfected and the practice of enterprises will be established to provide new impetus for the sustainable development of our economy.