The Effect Of Working Capital Management On Corporate Performance Of Listed Companies Of China

As an important part of corporate assets, working capital works in every channel of the company, so the effective management of working capital is very essential to the development of the company. However the traditional theories on management of working capital mostly divided it into three parts:inventory, account receivable, account payable, other parts are usually ignored. Recently with the development of channel management, supply chain management and customer relationship management, the research of working capital has new progress. The research of this paper adopts the new classification of working capital which is based its relationship with different channels of business activities, so all terms of working capital are considered in this paper. Though the cycle of working capital based channel management has been used to evaluate the performance of working capital management, it has not been applied to empirical researches. In this paper, the new index is used to analyze the impacts of working capital management on corporate performance.In this paper, both theoretical and empirical methods are used. In the theoretical analysis, it focuses primarily on the impact that every parts of the working capital put on corporate performance. In the empirical analysis, it select new index to measure the management of working capital and corporate performance. There are five parts of the paper:the first part is the introduction, it mainly introduce the background and significance,the methods and content,the contribution and deficiency of the research; the second part is the conclusion of both domestic and foreign research; part three analyzes the impacts from the theoretical aspects; part four is the empirical analysis part; part five is the conclusion of the former parts, in this part, rational suggestion is proposed to enhance the efficiency of working capital management.The innovation of the research is that it uses the factor analysis of comprehensive index to measure the company performance, at the same time the measure of working capital management efficiency is the cycle of working capital that based on different channel of the company. The research provides a new field of vision and in empirical research.In addition, industry factors are taking into account, it makes the argument more scientific, more convinced.