Empirical Study On Relationship Between Working Capital Management Performance Based On Channels And Enterprise Performance: For Real Estate Listed Companies

With the rapid development of economy in our country and the deepening levelof opening up, the development of real estate industry in our country is so rapid that itis becoming the pillar industry of our country. Behind the huge developmentpotential,there are also a series of challenges.It is a key problem that how to possesscore competitiveness and improve the value of company in the fierce competitiveenvironment at home and abroad. Working capital management is an important part inenterprise’s financial management activities and its management performancedirectly influences the financial target of the maximization of enterprise value. Atpresent, the latest research result of working capital management performance is theevaluation system of working capital management performance based on channelsthat was put forward by Professor Wang Zhuquan.The system classifies workingcapital as operating activities and financial activities, and divides the working capitalof operating activities into purchasing channel, production channel and marketingchannel. The system can make comprehensive analysis for working capitalmanagement from the point of channels and supply chain, but the relationshipbetween the evaluation system and the enterprise performance remains to be furtherstudied in the empirical research real estate enterprise belongs to typical capitalintensive industry, and its working capital has important characteristics of bigamount,long cycle days, strong industry relevance and being strongly influenced bypolicy and area. Therefore it is very necessary to study the relationship betweenworking capital management performance based on channels and enterpriseperformance of real estate companies. Based on the above consideration, from thepoint of channel management,this paper studied the relationship between workingcapital management performance and enterprise performance of real estate companies by the empirical research method in order to find the method that improving theenterprise performance of real estate industry by changing the working capitalmanagement performance based on channels and add power for the development ofour national economy.Specific research work is as follows:(1)Based on the study on the articles of working capital managementperformance, enterprise performance and the the relationship between them, the paperformed its research ideas in order to add the research of this field.(2) Combined with the characteristics of working capital of the real estateindustry and the concept of balance between risk and benefit of working capital,thispaper made theoretical analysis on the relationship between working capitalmanagement performance based on channels and enterprise performance and putforward the research hypotheses.(3) This paper divided enterprise performance into financial performance andmarketing performance, with factor analysis method on financial performancemeasure, with Tobin’s Q on marketing performance measure, with the evaluationsystem of working capital management performance based on channels on workingcapital management performance measure. This paper chose the data of real estatelisted companies from2007to2010and use the software SPSS for empirical study onrelationship between working capital management performance based on channelsand enterprise performance, including descriptive statistics analysis, the correlationanalysis and regression analysis, etc.(4) This paper analyzed the empirical study results and formed the basic researchconclusion. Finally，this paper put forward the countermeasures to change the workingcapital management performance so as to enhance the enterprise performance on thebasis of the study conclusions.