Empirical Study Of The Retail Industry Companies Working Capital Management And Business Performance

Retail as a new country economic growth point, has an extremely important position and role in the national economy. Meanwhile, the promotion of retail competitiveness is also an inevitable requirement of international competitiveness. After China entered the WTO, retail enterprises are facing the enormous challenge of transnational corporations. How to improve the competitiveness of enterprises as soon as possible in the fierce international competition in the retail, has become an urgent problem. Management of retail enterprises especially the level of financial management will directly affect their competitiveness, while working capital and routine production management activities are closely related, and its tentacles can be extended almost to the enterprise in all aspects of production and operation; To some degree, the level of enterprise competitiveness depends directly on their working capital management. Therefore, the domestic retail industry working capital management that is operating policy analysis is of great theoretical and practical significance.This paper firstly describes the current development of China's retail situation, development trends, as well as important role of working capital management to the development of retail enterprises, and then from the working capital, working capital policy concept, it analyses the nature of the current assets and current liabilities. It discusses working capital and corporate liquidity, profitability and enterprise risk trade-offs, as well as working capital management on business performance, and deeply analyses the content of working capital policy and the development trend in recent years. And then by collecting the information of working capital policy in retail industry for nearly 10 years, it sums up the characteristics and trends of occupancy at current assets and current liabilities for China listed companies in the retail industry. In order to know our country retail enterprises operating capital investment policies, financing policies, by calculating the retail industry such as cash flow cycle to know our country retail level of working capital management. Then it selects the cash-flow period (accounts receivable + inventory turnover cycle revolving cycle - accounts payable turnover cycle),current assets and current liabilities to total assets and total liabilities to reflect the scale of an enterprise's working capital management efficiency, working capital investment policy, working capital financing policy, from the profitability, growth, cash flow position of these three areas to evaluate a company's business performance, It selects three indicators-the capital return rate, sale growth, operating cash amount to represent profitability , growth and cash flow situation, by using of multi-linear regression, empirical results shows that the cash flow cycle return on capital and business are significant correlation, regression model Y1= -0.630X1 +0.536, while the corporate growth and operational capital management do not exist any correlation in all aspects. Cash flow and the cash flow cycle return on capital that is the management efficiency of working capital relate. regression model Y3= -1101566.632X3 +2.717.Finally, at the basis of empirical results, it makes policy recommendations to working capital policy for listed companies in the retail industry.In the course of this paper, literature research methods,comparative research methods, qualitative analysis combined quantitative analysis are mainly used.