Management Of Working Capital Of China's Photovoltaic Industry Companies

This study based on the selection of a rapid development of emerging industries,aiming at the working capital management status of China’s listed companies in thephotovoltaic industry. The influence of working capital policy choice on businessperformance has been analyzed based on the theoretically discussion of working capitaland management policy by searching the domestic and foreign referenced literature.The hypothesis has been proposed after analysis of working capital managementthat working capital financing policy aggressiveness and occupancy ratio of workingcapital are negatively correlated to the corporate performance in China’s photovoltaiclisting company. Three positivism models has been constructed, we use the return ontotal assets, return on net assets and return on sales as dependent variable. And thedescriptive, correlation and multiple regression analysis have been done for thevariables. This study suggests that in China’s listed companies we can improvecorporate performance in assets and capital level by reducing asset-liability ratio andliquidity ratio and expanding the scale of assets.At last, this study suggest that financial management objective should be buildaccording to the working capital management goals, the budget management of workingcapital should be improved, financial management system should be built to control therisk of working capital.