Impact Of Working Capital Management On Corporate Performance

Working capital management is a significant part of companies’financial management, and it has a vital impact on the development of high-tech listed companies. To understand the current situation of high-tech listed companies’working capital management in China, to explore the impact of working capital management on corporate performance, and to have a knowledge of the differences in companies’working capital management with different ownership, this paper regards A-share high-tech listed companies in both Shanghai and Shenzhen Stock Exchanges from 2007 to 2013 as the research object to analyze the current situation and characteristics of high-tech listed companies’working capital management from two aspects, which are working capital management efficiency and policies. Besides, this paper also did a regression analysis on the impact of working capital management on corporate performance.Results reveal that high-tech listed companies’working capital management efficiency has shown a decline tendency since 2011, and high-tech state-owned listed companies’ working capital management is more efficient than that of the non-state-owned listed companies. High-tech listed companies take conservative working capital investment policy and aggressive working capital financing policy, and both working capital investment policy and working capital financing policy of non-state-owned listed companies are more conservative than those of state-owned listed companies. Improvement of working capital management efficiency, more radical working capital investment policy and less radical working capital financing policy are all conducive to the improvement of corporate performance. Besides, if working capital management efficiency is improved, improvement of high-tech non-state-owned listed companies’corporate performance is greater than that of the state-owned listed companies, and if working capital financing policy becomes more conservative, improvement of high-tech non-state-owned listed companies’market performance is greater than that of the state-owned listed companies.