Redefinition Of Working Capital And Management Innovation

The management of working capital, which serves as the important content of finance management in an enterprise, not only has a direct effect on the liquidity and profitability, but is also vital to the enterprise. Its importance is highlighted by the financial crisis and never before has the research on the management of working capital been given so much attention.The research focus of working capital management at home and abroad has been through isolated optimization study of each project item to integrated research on working capital management, and has focused on the evolution from new perspectives like supply chain management and channel management. Under such influence, the managerial approach of working capital had gone through the evolution from focusing on pure mathematic method to supply chain optimization and management. The research on working capital management from new perspectives has won wide support and set off an upsurge. However, research on basic theories of working capital management is relatively weak. The theory of working capital management has not occupied a corresponding special place in the research on financial theory.A complete theoretical framework has not been formed in the matter of concept definition, target and influencing factor of working capital. The practice of working capital management needs theory as its guidance. To solve the problem of basic theories of working capital management, we need to begin from the source of working capital management. To remold the concept definition of working capital management enable the basic theory of working capital management to keep with environmental development and managerial requirement.In order to promote the innovation and development of working capital theory and methodology, this dissertation attempts to construct theoretical framework of working capital management and perfect its methodology from theory and application aspects. It starts from reconstruction of working capital concept, and study from view of raising and employing working capital. First of all, this dissertation redefines and reclassifies working capital on the base of environmental appeal and practical development, and clarifies the basic view of point and objectives with the new definition, which preconditions the whole study. Secondly, a evaluation system of working capital is constructed to provide management standard, and then probe into management innovation study in aspects of methods, organization and mode. Lastly, the evaluation system is tested in machine equipment industry. It takes Haier Corporate as an instance to study its risk and solution of working capital management, summarize its mode features and use case study to verify the effect of working capital management mode in corporate.The innovative achievements of exploratory research can be concluded as follows:firstly, from the perspective of enterprise operation and management, we define the working capital as:working capital equals total assets minus operating liabilities. The formula makes the concept of working capital keep with the development of theory and the requirement of managerial practice. On this basis, we take the obtaining and utilization of working capital as a basic research perspective, balance risk and return of working capital management and turn to Data Envelopment Analysis, which construct the appraisal system of working capital management:a quantitative and qualitative measurement system; Secondly, the working capital budget management and flow rate report of working capital are two technical essentials of working capital management innovation, which emphasize the importance of integrated planning and control of working capital management, intensify the strategic height of working capital management and illustrate the change of working capital organizational structure, build up tentative working capital organizational structures based on work flow, and construct overall study system of working capital management.