Operational Risk And The Financing Decision Of Working Capital

The financing decision of working capital is an important part of the daily decision of an enterprise,and it is closely related to the short-term liquidity of the enterprise.Among the influencing factors of the financing decision of working capital,we find that operational risk plays an important role.This article probes into the management risk factors in the financing decision of working capital more detailed analysis,and we example the light manufacturing in China for the size of the concrete to explore the management risk of the mechanism of action of enterprise financing decision of working capital.Furthermore,we analyze the enterprise short-term debt paying ability to improve enterprise’s financing decision of working capital to choose.Finally,we put forward the relevant policy recommendations.This paper takes 62 companies of the light manufacturing enterprises in China as the sample,and it takes 2013-2017 as the interval to form 310 observation data.Firstly,it subdivides the ways of working capital financing,and carries out a series of analysis and research from the theoretical level.Secondly,we did a descriptive analysis of the data,and it shows that the net occupation of commercial credit in China’s light industrial manufacturing industry is negative for a long time,what’s more the operation risk has a great impact on the three ways of financing of working capital.Last,we made an empirical analysis of 310 panel data of China’s light industrial manufacturing industry,and we conduct regression analysis on business risk and net occupation of commercial credit,business risk and short-term financial liability ratio respectively.The study shows that the operating risk and the net occupancy of commercial credit present positive correlation,negative relationship between the operating risk and the short-term debt ratio.In the daily operation decision-making of an enterprise,when the operation risk increases,it will further increase the working capital financing gap.The company will seek for two other financing methods of formal channels.Considering the risk and cost factors comprehensively,most enterprises in Chinese light industry and manufacturing industry choose the working capital financing method with lower risk.As the operational risk has a certain lag,the enterprise should predict the operational risk of the enterprise in advance,according to the enterprise’s strategic goal,what’s more it may take the relevant working capital financing decisions in advance;The calculation of an enterprise’s short-term solvency includes the definition of short-term financial liabilities.When an enterprise controls liquidity risk,it should reduce the proportion of short-term financial liabilities in working capital financing decisions.