Research On Working Capital Management Of *ST Companies

Since the reform and opening up,China’s economic strength has been continuously improved,and the capital market has gradually completed.Since its establishment,the securities market has made great contributions to the economic development of our country,and the relevant policies and systems are becoming more and more perfect.The newly revised listing rules in December 2020 are more standardized and put forward higher requirements for listed companies.On the one hand,the improvement of the *ST system can remind investors to invest carefully;on the other hand,the implementation of the *ST system brings some pressure to the identified companies and urges them to improve their own business conditions.Due to the * ST system before the December 2020 listing rules revision only examines the net profit for companies with two consecutive years of losses,many *ST companies take off their*ST logo by means of asset restructuring,equity transfer,divestiture,replacement of assets,related party transactions and government subsidies.However,many studies show that most*ST enterprises don’t really improve their operating ability.Therefore,whether before or after the revision of the new listing rules,enterprises should strive to improve their own business level and ensure the smooth operation of enterprises.In the critical period of China’s economic transformation,the industry competition is becoming more and more fierce.In the course of operation,many enterprises have problems such as shortage of funds and financing difficulties,which makes more and more enterprises gradually realize the importance of rational allocation of funds and effective management.As one of the important components of financial management,working capital management can reflect the level of management and management of enterprises.Effective working capital management can allocate the working capital of the enterprise more reasonably and ensure the smooth operation of the enterprise.In order to effectively improve the management efficiency of working capital,enterprises can start from the three aspects of capital structure,factor management and channel management,comprehensively analyze the current situation of enterprise management,formulate management plans and plans according to their own situation and market environment,and strive to improve the turnover speed and improve the conditions of enterprises.Based on this background,this paper uses literature research and case study to explore the impact of working capital management on *ST company’s cap removal.First of all,this paper reviews the relevant literature at home and abroad,and on this basis summarizes the common methods of *ST companies cap removal and the working capital management.Secondly,this paper selects the enterprises with hats due to two years’ losses in 2016,and divides them into successful hat removal group and non-cap removal group,and analyzes the changes of their working capital situation in 2014-2019 from three aspects: working capital structure,factor management and channel management.Then,this paper takes Cangzhou Dahua as a case company,and analyzes the method of successfully removing the cap through working capital management after wearing the cap,that is,adjusting the working capital structure,strengthening the factor management and channel management.Finally,this paper puts forward the research conclusions and related suggestions to provide some suggestions for similar * ST companies.