Empirical Study Of Working Capital Management On Business Performance

Working capital is an important economic resource of companies. Working capital management is an important activity in corporate financial management, due to the difficulty of working capital management, business decision-making errors and other problems, corporate working capital management efficiency is relatively low. The data that the low efficiency of fund management companies will bring great risk, for example, "Li Ning" as a big sporting goods manufacturer, because of funding strand breaks lead company in crisis. Working capital management is a business-to-current assets and current liabilities implemented by management, is an event management for all mobile projects carried out by companies. It belongs to a short-term financial management of enterprises, involving short-term investment decisions and financing activities of various liquidity, closely related to all aspects of the production and operation of enterprises. Effective working capital management is to ensure liquidity premise enterprise funds to accelerate the turnover rate of working capital, and ultimately improve corporate performance.First, this paper introduces the research background and the selected topic significance, and reviews the research scholars theory relative working capital, including working capital management policies and management efficiency aspects, and then introduced the working capital management and corporate performance and other related theories combining management status of China’s manufacturing motherboards and small plates working capital, using descriptive statistics and research methods of comparative analysis, were analyzed manufacturing motherboards and small plates and efficiency of working capital management policies.Then, we select the object of study is the manufacturing companies in Shanghai and Shenzhen Stock Exchange, collect these companies three years 2011,2012,2013 and corporate performance data needed working capital management-related data collected and analyzed them to Tobin’s Q as a measure of corporate performance indicators. By descriptive statistics, correlation and linear regression test analysis test what kind of relationship exists between the motherboard and the small plates of Chinese Manufacturing Listed Companies working capital management and enterprise performance in the end. The results show that China’s manufacturing motherboard company current liabilities and accounts payable turnover ratio and firm performance is positively correlated, accounts receivable turnover, inventory turnover and cash cycle was negatively correlated with firm performance, liquidity ratio and corporate performance irrelevant, and small plates of these indicators are not related to the business performance.Finally, based on the above theoretical and empirical analysis, t in order to improve our management of working capital, giving some suggestions.