Empirical Study On Relationship Between Working Capital Management Performance Based On Channels And Enterprise Performance: For Listed Biopharmaceutical Companies

With the development of economy and the growth of population, the global pharmaceutical industry continues to develop at a high speed, which is known as a rising industry. However, because Chinese biological pharmaceutical enterprises started late, most are still in primary stage. How to get the core competitiveness in the fierce competitive environment both at home and abroad, and realize the comprehensive coordinated development to attain the maximization of the benefit, is the key problem that most biopharmaceutical companies are facing. Working capital management is an important part of enterprise financial management activities, and its management affects the achievement of value maximization.This article summarized both the domestic and abroad research status of working capital management performance and business performance. Then, on the basis of combining the characteristics and risk benefit tradeoff concept of working capital of the listed biopharmaceutical companies. We analyzed the theory of relationship between working capital management and enterprise performance of the biological pharmaceutical listed companies. First, we made the corresponding assumptions, then through the empirical study of factor analysis, descriptive statistics analysis, correlation analysis, regression analysis and other methods, we analyzed the relationship between them.This paper took biopharmaceuticals companies listed in Shanghai and Shenzhen as the research objects, and selected 68 biological pharmaceutical listed companies in 2011-2013 for empirical analysis. At first, we divided working capital into financing capital and working capital from the prospect of using channel. What’s more, we divided working capital into:working capital of procurement channels, working capital of the production, working capital of marketing. And then through the descriptive statistics analysis, correlation analysis and regression analysis methods, we concluded that working capital management of business activities has the negative correlation with the enterprise performance, while working capital management of financing activities has the inverted u-shaped relationship with and enterprise performance, and working capital of procurement, production, and marketing have negative correlation with corporate performance. At last, based on the analysis above, we gave some suggestions to promote the performance...