Empirical Research On Working Capital Policy And Corporate Performance Of Listed Companies Of China

Research on working capital policy of enterprise has been the focus of Western companies since the early1930s.After many years of practice; the developed western country enterprise has formed a set of relatively scientific working capital policy system. Compared with the western developed countries, the development working capital policy of our country has the obvious deficiency and gaps in both aspects of research and practice. Additionally, listed companies of China have no formal working capital policy currently, and the relationship between working capital policy and company profitability has formed a unified authoritative conclusion. In this wide background, this paper sets out a comprehensive research on the relationship between working capital policy and company profitability.This thesis study on the relationship between working capital policy and corporate profitability by both methods of normative research and empirical research. On one hand, it carries out normative analysis on working capital policy based on the existing research results. On the other hand, it sets out empirical research on the relationship between corporate profitability and working capital policy of both investment and financing, and come to a general conclusion.This thesis can be divided into five parts:Part I, introduction. Introduction expounds research backgrounds and significance of the thesis, research ideas and methods as well as potential contribution. Additionally, it carries out literature review of both domestic and foreign countries and makes easy comments. It finds out deficiency in this research area based on the summary of existing theoretical results of scholars, thus providing value orientation for this research.Part II, theoretical basis. This part firstly introduce the concept, type and influencing factors of working capital policy, then it goes on to introduce some relevant theory of corporate profitability. Finally, it introduces theory on relationship between corporate profitability and working capital theory.Part Ⅲ mainly covers the preparation work of empirical research. In this part, research sample filter and data source are referred, then the theoretical analysis and proposed hypotheses are made. Thirdly, it designs variables and build mathematical models according to the research hypothesis.Part Ⅳ, empirical study. This section is the core of this thesis, and it includes both descriptive statistics and multiple regression analysis. In the descriptive statistics part, it analyze the current situation of listed company of China on three aspects respectively, they are working capital investment policy, working capital financing policies and working capital comprehensive policy. In multivariate regression part, first of all it carries out correlation analysis of variables to determine whether there is existence of linear relationship, and then it sets out a regression analysis of the model established, and then expound its results.Part Ⅴ, closing remarks. In this part, it summarize the views of full text to come to the conclusion and make some relevant suggestions while set out some enlightenment of this research area.The most outstanding potential contribution would be that in the situation where current study of relationship between working capital investment policy and corporate profitability indicate no consensus, this thesis further analyzes the components of current assets and the relationship of each component with corporate profitability. This enriches the theoretical achievements of this area.