Empirical Research On Listed Manufacturing Companies Working Capital Policy

Working capital policy is the principles of the working capital decision-making, guiding enterprises working capital management. We must rely on scientific working capital policy ensuring the realization of working capital managing aim. Despite working capital management in the enterprise's financial position is very important, but in the country has not received the attention it deserves. In theory, our country lack of theoretical innovation and empirical research in the respect of working capital;In practice, China's enterprises working capital management level is still lagging far behind the international level, expressed as too much working capital, excessive reliance on short-term debt financing, low efficiency of working capital operating, and so on.The current empirical study of working capital policy both make up for the shortfall of theoretical research of working capital, and also helps enterprises make scientific working capital policies, improving working capital management level. Manufacturing listed companies usually set for production and marketing business into one, it has the typical characteristics of the companies, and manufacturing listed companies is about 60% of the total number of China's listed companies, to research manufacturing listed companies working capital policy, in addition to its research results to improve working capital management for manufacturing, but also good enough to learn from other industries.This paper selected part of manufacturing listed company's data the years 1999-2006 for samples, use descriptive analysis method reveals China's manufacturing working capital policies timed dynamics, the status quo, and the gap with Europe and the United States, and analyze the causes. At the same time, using multiple regression analysis and the analysis of the typical cases respectively, making empirical study to the relationship between the working capital policies and the company's financial features and company's management features. Evidence shows that: working capital policies is closely related to corporate performance, the company solvency and operational risks. Companies marketing mode, supply chain management, information level and financial management mode have significantly affect on working capital policies. The article finally proposed some recommendations on China's manufacturing listed companies working capital policy formulation.They are: 1) to strictly control the scale of current assets, working capital policy should seek to hold tight. 2) Current liabilities persist for matching, working capital raising policy should moderate suitable. 3) Attach importance to the efficiency of operating working capital, the working capital operating policy should be to ensure efficient. 4) The policy-making of working capital need to consideration industry characteristics and the environment where enterprises be. 5) The policy-making of working capital need to consider company's management features.