Research On Working Capital Management Of Telecommunication Operators

Working capital is referred to each cycle of an enterprise, such as material procurement, production and product sales. Working capital is a significant element of enterprise assets and can be occupied in the long-term during the production. It plays an important role in the normal operation and future development of an enterprise.Working capital of telecommunication operators distinguish from that of other industries owing to industrial characteristics of telecommunications, which present economy of scale, economy of scope, whole network and simultaneity of production and consumption. Therefore, the working capital management will also be differed from other industries. Current researches mostly focus on all listed companies in a centre Stock Exchange or segment industries such as manufacturing industry and real estate industry. No related research focused on telecommunication industry.Based on telecommunications’ working capital, this thesis is committed to carry out research on correlation of working capital management and financial performance, financial risks, enterprise value respectively. The measurement indicators have been determined firstly, then the correlated models have been established. Within SPSS software, the conclusion can be made out. Based on the empirical analysis, certain financial suggestions have been put forward to help improve operators’ management and efficiency.