A Research On The Effect Of Each Channel Working Capital Amangement On The Profitability Of The Listed Enterprises

Both the food beverage industry and the textile garment industry are important toour daily life and the economic development. Also with the development of economicand technology, the food beverage industry and the textile garment industry aredeveloping rapidly. Although the new industries are always on emerging, the foodbeverage industry and the textile garment industry are still the two major industries inthe manufacture industry. What’s more, the food beverage industry and the textilegarment industry are the measure of people’s living standard and the strength of onecountry’s economy. And the working capital of food beverage industry and the textilegarment industry are sensitive to the change of season, so it is essential to strengthenthe management of working capital.We can avoid the shortage of cash flows caused by the inappropriatemanagement of working capital. Also, we can learn the working capital managementon the profitability of the enterprise from the stakeholders and the channel theoryperspective in order to strengthen overall profitability the enterprise. So it issignificant in the theoretical and practical perspective. The main research work andachievements of this paper are as follows:First, we review the literature on working capital management theory and theempirical research of working capital management on the profitability of theenterprise and summarize the literatures’ shortcomings. Then, we bring forward thebasic objectives and the main content of our research. We list three basic theory: thestakeholder theory, the supply chain theory and the channel management theory.Second, we select336samples of the listed companies as the research object.The conclusions are as follows: The Management cycle of working capital inoperating channels is negative to the profitability of the enterprise. The Managementcycle of working capital in producing channels is negative to the profitability of theenterprise. The Management cycle of working capital in marketing channels isnegative to the profitability of the enterprise. The Management cycle of workingcapital in purchasing channels is negative to the profitability of the enterprise. Third, we find that the Management cycle of working capital in producingchannels is more important to the profitability of the enterprise. By the study of thefood beverage industry and the textile garment industry’s characteristics and theproblem in working capital management, we give suggestions on the working capitalmanagement, especially on the working capital management in producing channels inorder to improve the profitability of the food beverage industry and the textilegarment industry. We also put forward the limitation of this paper and directions forthe future research.