Research On The Influencing Factors Of Working Capital

Effective working capital management relies on the analyses of the related factors that may affect the working capital, while we must relies on the analysis of the system background of listed companies in China when we study our state-owned enterprise working capital management. In doing such, In this paper, we will study the influencing factors of working capital from three areas (full samples of listed companies, the samples of state-owned listed companies and the samples of non state-owned listed companies)by investigating whether and how enterprise background, asset-liability ratio, sales growth, operating cash flow changes, company performance and company size influence the working capital management. Our results show that debt-to-assets ratio and operating cash flow changes are significantly associated with the working capital management .The influence of asset-liability ratio to the working capital is that state-owned listed companies are more significant than non-state owned listed companies ; the influence-gap of the operating cash flow changes between them is not significant. This indicates that the state-owned companies may have broad financial channels relying on the government support, so they don't pay more attention to short-term working capital management. Overall, conclusions and assumptions is coincident with each other. Sales growth, company performance and company size are not significant associated with the working capital management. So we should need further research. This paper discusses and testing various factors, especially how the ownership of company influences the management of working capital, which aims at revealing the relations between controlling variables and working capital. So we can provide policy guidance for the management of working capital. According to the above empirical results, we can take reverse operations, or example, along with the asset-liability ratio improving, the demand for working capital will decrease, enterprise can reasonably adjust the policy of using working capital to radical direction, other factors is in turn ; if contrary changes take place ,then adjust to the opposite direction only.