A Research On The Relationship Beteen Working Capital Management Efficiency And Performance

With the increasing maturity of the economic development and gradual accumulation of practical experience for management, the battlefield between industries and enterprises have shifted from marketing into its own internal management. As the core content of financial management, working capital management is important for Modern Enterprise Administration. It reflects the management level of enterprises and potential competitiveness comprehensively and thoroughly. Both the domestic and foreign research has shown that working capital management efficiency not only acted on the level of liquidity and operating performance of the enterprises directly, but also related to the survival and development of enterprises.This article selected the financial data in2007-2011of80listed companies in the Food&Beverage Industry for the sample. First, we used factor analysis method to extract comprehensive performance indicators, and calculated the overall performance of score as the dependent variable. And then, independent variables group was compose of Cash Conversion Cycle, turnover days of Accounts Receivable, turnover days of Inventory, and turnover days of Accounts Payable, which reflected the efficiency of working capital. Finally, the method of correlation and regression analysis is used to study for relationship between the Food&Beverage Industry listed companies working capital management efficiency and business performance. The Empirical approach of listed companies in the Food&Beverage Industry tried to explore the better ways for China’s Food&Beverage listed companies in working capital management, and provide data support and research experience for the Food&Beverage Industry, and create new opportunities for its related industries.