Automobile Manufacturing Working Capital Management And Enterprise Performance Empirical Research

The automobile manufacturing industry is an associated industry which plays an enormous role in the national economy. In2010, the volume of production and sales both hit new historical records, reaching more than1800million units. And the auto industry has become an important force in the process of China's economic takeoff.However, with the tightening macro-control policy and the limit policy on car in Beijing, Shanghai and other cities, how to improving the competitiveness has also become a increasing concern, whose products are gradual homogeneous. In the daily activities, working capital management is very important, in a sense, the level of competitiveness of enterprises depending directly on its ability to manage working capital. Therefore, the study on working capital management policies of domestic auto industry has an important theoretical significance and practical significance.Firstly, this paper reviews the theory of working capital management studied by domestic and foreign scholars, which contains the structure and the efficiency. Secondly, the historical development of China's automobile industry and the main issues are described. And through collecting the financial data of the working capital management of the automotive industry in China listed companies from2001to2010,I make a descriptive statistical analysis on working capital management status.Next, the relation between the automotive industry working capital management policies and corporate business performance is studied with the regression analysis. And the result shows that the automotive industry in China listed companies working capital management structure tends to be radical, but the efficiency working capital management is getting higher.The result also shows that the ratio of current assets and the company's operating performance has a significant positive correlation. The current ratio, current liabilities to total assets ratio and the company's operating performance don't exist a correlation. And accounts receivable turnover, inventory turnover rate, and business performance showing a significant positive correlation, but negative correlation is found between the accounts receivable turnover ratio and the company's operating performance.Finally, some recommendations on working capital management for the automotive industry in China listed companies are made.