Empirical Study On Working Capital Tactics And Effect Of China Listed Companies

Working capital management is very important in the corporate finance.The current global and domestic economic and financial environment makesworking capital management get enterprise financial management highestpriority. Therefore, this study highlights the important practical significance.Through normative analysis, this paper analyzes the essence andcomposition of working capital. Based on the economics and finance relatedknowledge, combining with China’s securities market actual, this paperconstructs the working capital evaluation model.The first part of the empirical analysis studies how the listed companies’working capital is very important for enterprise business performance and therelationship between the working capital choice and business performance.The analysis results show that to keep a good appropriate ratio workingcapital will produce significant positive effects on the listed companiesoperating performance. In addition, industry background difference is a keyfactor to affect listed companies working capital strategy choice.The first part of the empirical analysis studies listed companies’ economicmodel. And then through the working capital information, the paper tries toinfer that what working capital information contains about the listed company private management related information. Then, the paper tried to use therecent working capital data to evaluate and predict enterprise businessperformance in the near future.Finally, this paper summarizes the study results and does the prospect ofthis research.