Research On The Impact Of Earning Raised By Working Capital Structure Of China's Retail Of Listed Companies

Our research on working capital management mainly focus on working capital management, working capital policy and working capital management efficiency while the research on working capital structure of less. The literature tends to research the relationships between working capital and business performance or corporate value, and no articles research profitability in view of working capital structure. Fierce market competition makes retail must improve profitability constantly to enhance their competitiveness. Reasonable or not of retail's working capital structure affects their normal operation and working capital efficiency, then affects their profitability. The paper topics under this background.First, the paper introduces the theories of working capital and profitability. Second, it uses scatter plots and descriptive statistics to understand the status of our retail's working capital structure and profitability, and analyze the status simply between the two. Then empirical research working capital structure's influence on profitability by factor analysis, correlation analysis, stepwise regression methods and so on, and the profitability group study also, and empirical results obtained. Finally, the paper analyzes empirical results and presents suggestions for each group.The paper specializes rearch the impact on earning raised by working capital structure for the first time to verify the existence of this effect, and come to the conclusion that the profitability is effected by working capital structure is larger than capital structure. The paper makes all the working capital structure indicators as independent variables into the model, changing the existing situation that only using flow rate or several indicators as working capital structure indicators to rearch. In the the paper not only including the overall sample, but also including the group sample, and come to the conclusion that the profitabilities of good earning group and bad earning group are affected by different working capital structure indicators.