The Research Of Cash And Working Capital Management Efficiency For China's Listed Manufacturing Companies

The manufacturing sector is the material basis of the national economy and the main industry to enrich the country.It reflects the international competitiveness of the country and decides China's international status.Therefore,the research of the manufacturing company's currency funds and working capital is of great theoretical and practical significance.This paper reviews the domestic and foreign scholars' research on the results of monetary funds and working capital management.From the regression analysis between the performance and monetary funds ratios or the net working capital ratio, we demonstrates that monetary funds ratio and the net working capital ratio are two important factors impacting the performance.This paper includes six chapters.Chapter 1(Review) introduces a research background,contents and significance,the framework of this paper.Chapter 2 includes literature review concerning the currency funds and the net working capital.Chapter 3 is about the research design.It details description of the data sources and sample selection,the definition of research variables,research supposition,research procedures.Chapter 4 is the descriptive statistics and analysis,contains the analysis of currency funds ratio and net working capital ratio.The content of Chapter 5 is description and analysis of the empirical results.It tests the regression of the relation between the currency funds ratio,net working capital ratio and the performance of the company.Chapter 6 is the conclusion of the study and enlightenment in this paper,and puts forward the limitations of this study, makes recommendations on the improvement direction of follow-up studies.In this paper,through the collection of the manufacturing sector 2715 samples,author uses descriptive statistics and regression analysis methods,discusses how to manage currency funds and net working capital to improve the profitability of enterprises,the level of shareholder profits and cash earnings capacity.The main conclusions getting from this paper contain that:First,in the overall manufacturing samples,that currency funds ratio effects the return on equality significantly.It is a weak positive correlation between the net working capital ratio and return on equality.Second,in the overall manufacturing samples,earnings per share ratio and currency funds,net working capital ratio is a positive correlation.Third,in the overall manufacturing samples,the operating net cash to total assets ratio is related to the monetary funds,it is a negative correlation between he net working capital ratio and the operating net cash to total assets ratio.Fourth,different level of profitability, different manufacturing sub-sectors companies are influenced differently.Through theoretical and empirical analysis,this paper argues that in the listed manufacturing companies,if the currency funds ratio is high,that is,then companies can make use of these funds to improve the situation of production and sales, development new products,expand sales channels in order to obtain good performance.If the net working capital ratio is high,the amount of liquid assets are more than the number of current liabilities,companies may choose a more liberal credit policy,easy to expand the company's business and enhance their profit margins and earnings per share.Net operating cash flow due to operating cash and working capital increase in the difference.If the net working capital is much,than part of the cash should be reduced is much,the net operating cash ratio is less.Number of manufacturing enterprises,sub-sectors is much,different level of profitability, different manufacturing sub-sectors companies are influenced differently.Therefore, all the manufacturing enterprises should select the most suitable structure of their own monetary funds and working capital management strategies to improve business performance and achieve the rapid development of manufacturing industry.