The Empirical Research Of The Relationship Between ERP And Working Capital Management

Since 1990, L. Wylie who belongs to Gartner Group puts forward the concept of ERP as one of the most important management system, ERP system is broadly applied in organization of the world. Nowadays, ERP system becomes the most important and broadly applied system. ERP integrates the logistics, the capital flow and the information flow. Consequently, ERP collocates the enterprise resource, accelerate the circulation and turnover of the capital, reduce the impropriation of current assets, improve the economic benefit and core competition of enterprise, the working capital management is very important to the company, therefore enterprise must hold some working capital. To strengthen the working capital management is namely to enhance the management of current assets and current liabilities. However, ERP implement will bring great infection to the working capital management. This article take the listed companies for example, demonstrably analyzes the logical connection of ERP and working capital management. There is some innovation of research thoughts and research methods in the article in this area, the main research work and findings are as follows:First, the first chapter is introduction,it introduces the background and the purpose of the research, it sums up the current study situation.Secondly,the article analyzes the concept of ERP,then gives us the concept of working capital management, afterwards, the article analyzes the logical connection of ERP and working capital management.Thirdly, the article chooses listed companies as an analytical sample, through multiple SPSS statistical analysis software and linear regression, analyzes the logical connection of ERP and working capital management, and designs the demonstration model.Again, the article analyzes the logical connection of ERP and working capital management by using empirical studies. In fact, evidence of research findings are;ERP investment and current assets/total assets is negative relationship, ERP investment and current liabilities/total liabilities is negative relationship, ERP investment and working capital turnover is negative relationship, and ERP investment and working capital parliament is negative relationship.Finally, the article gives the conclusion of research.