The Research On The Relationship Between Working Capital Management And Corporate Performance For Chinese High-tech Listed Company

Working capital is the liquidity needed for day-to-day business turnover, and itsscope can be extended to all aspects of procurement, production, sales, andinformation management. The financial manager usually use about60%of the time toshort-term decision-making in the day-to-day financial management of enterprises, soworking capital management has become an important part in the overall strategy.Compared with the traditional enterprise, high-tech enterprises with high input,high-risk, high-yield and so on, which cause that the working capital management aremore difficult, the sources of funding are relatively narrow and the phasecharacteristics of working capital management, so the the working capitalmanagement of high-tech enterprises has its particularity. Therefore, the research onthe relationship between high-tech enterprise working capital management andcorporate performance is important for working capital management of high-techenterprises under the premise of considering risk and return trade-off.This article will select the enterprises that are listed in the Shanghai andShenzhen stock before December31,2007and are identified as high-tech companiesbefore2008as samples. This article will analyze the2008-2010financial data of thesample enterprises. This paper introduce the criteria and results of the sampleselection, and assume that channels working capital management and corporateperformance has an inverted U-shaped non-the assumptions of the linear relationshipthrough analyzing the study. Then selecting the Return on total assets （ROA）as themeasure of corporate performance, selecting operating activities cycle（DOC）,purchase channel cycle（PUC）, production channel cycle（PRC）, marketing channelcycle（MAC） as the measure of channel-based working capital managementefficiency. This part also build the multi-quadratic curve regression equation andproposed the formula of operating cash flow advantages. The fourth part is the analysis of the empirical results, the chapter will analyze the total sample, themachinery, equipment, instrumentation industry and information technology industry.The content of analysis includes descriptive statistics, correlation analysis, regressionanalysis and the robustness test.Trough analysis we can known the situation of channels working capitalmanagement performance and the relationship between channels working capitalmanagement performance and company performance about the total sample, themachinery, equipment, instrumentation industry and information technology industry.This part will test the stability of this relationship by robustness test. Through analysis,this paper concludes there is the non-linear relationship between working capitalmanagement and corporate performance for high-tech listed company, and the mostadvantage of the overall sample, machinery, equipment, instruments, industry andinformation technology industry are50.91days,-10.93days and82.91days.In the three channels, the marketing channels working capital management shouldbe the focus for high-tech enterprises.This article has the breakthrough in the research methods, perspectives andobjects. On the research methods, this article confirms the significantly invertedU-shaped relationship between the various channels working capital management andcorporate performance for high-tech enterprises by establishing the multi-quadraticcurve regression equation and using the method of regression analysis. The empiricalanalysis reveals the relationship between working capital management and corporateperformance, which helps to guide the working capital management from theperspective of the channel for the high-tech enterprise.