Empirical Research Of Working Capital Management Policy On China’s Retail Industry Listed Companies

Working capital management is the enterprise current assets and current liabilitiesmanagement, it is the enterprise assets of the most active part, it directly decide the enterprise’sbusiness activities can be carried out smoothly, it is the important content of corporate finance.With the improvement of the management level, working capital management de-emphasizecapital source and capital occupancy ratio of management, but for as far as possible usenon-interest bearing or interest-free source of funds to meet operating on the need for the funds,and at the same time that the premise of liquidity, as far as possible to reduce the profitability ofthe bad assets, such as accounts receivable and inventory of occupancy, zero or negative workingcapital management.Based on retail listed companies as the research object, this paper analyzes China’s retailindustry listed companies working capital management policy and the present situation,influence factors and correlation with corporate performance on the empirical research.In this paper, at first the related theory research at home and abroad were introduced in thispaper, the working capital on the concept and characteristics, working capital managementpolicy types and its influencing factors. On the basis of theoretical analysis, from2006to2010,52home retail listed companies as research samples, according to the main business of listedcompanies to retailing classification research, first by using descriptive statistics analysis andcluster analysis to our country’s retail trade of listed companies working capital managementsituation of the empirical research, and then construct regression model, using correlationanalysis and regression analysis, the China’s retail industry listed companies working capitalmanagement policy influence factors, working capital management policy and corporateperformance between the empirical research.Through the empirical research analysis concluded that China’s retail industry listedcompany investment policy most belong to the doctrine of the mean type, financing policybelong to radical type; The investment policy influence factors are: sales gross profit margin,business activities net cash flow/operating income, inventory turnover, total asset growth,industry competitive position; Financing policy influence factors are: sales gross profit margin,accounts payable turnover, total asset growth, industry competitive position; The companyperformance and investment policy, financing policy negative correlation, but not significantly,and analysis of the current assets ratio under20%, the current liabilities ratio under50%when the company performance is higher, zero working capital management in a certain extentpromote the improvement of corporate performance.Finally, it points out that in order to improve the "zero working capital managementconsciousness, from inventory management, accounts receivable management, accounts payablemanagement aspects, and reference supply chain used in working capital management.