Research On The Relationship Working Capital Management And Enterprise Performance

With the transformation of planned economy to market economy, the goal of enterprise development also changed dramatically, from market competition into the internal management of ascension, one of the most prominent is the management of working capital. In modern enterprise management working capital management occupies very important position, the effect of working capital management affects the operation mode and the future development of the enterprise capability, relates to the success or failure of the enterprise, how to strengthen the management of working capital too much again, financial managers spend on it for at least 70% of the time, have also made obvious effect in the enterprise management. In related research literature of the management of working capital and corporate performance the research results,shown that the relevant relationship between working capital and business performance, but in many studies, index of working capital confined to a single project and cash cycle of a few fixed indicators, and few index based on the research of channels. Research from the aspects of its channel relationship with corporate performance, can improve the lack of theoretical research of working capital, but also provides new train of thought for today’s enterprise operating funds management. So, my added own insight on the basis of the research based on channel in this paper, divides the management of working capital alone for study the correlation between it and business performance, and identify the most suitable for modern enterprise operating funds management methods.Through a lot of reading the literature of working capital and financial management of the teaching material, I have collected some information about relevant management theory and empirical research method for the writing of this thesis. This paper chooses 1868 A-share manufacturing listed companies financial and non-financial data as research samples data in 2010-2014 Shanghai and Shenzhen two cities, according to the sample data, it has carried on the descriptive statistics to variable analysis, Pearson correlation analysis and linear regression analysis and the empirical analysis. The article be divided into five parts, from one to five Parts in general, respectively is the basis of the introduction section, the related theory, research method and the design, the empirical analysis and conclusions and outlook. research process section of this article from literature- the theory- empirical, reflect the content of the research completely.In this paper, I added own insight on the construction of index system of enterprise performance, and the thought that can reflect the enterprise performance variable, then build a comprehensive strong comprehensive performance indicators. Comprehensive performance indicators join the research of activities of working capital and corporate performance relationship in the empirical analysis. Combined with literature analysis and theoretical analysis, it is concluded that management of working capital turnover period are negatively related with corporate performance, thus find out the suitable working capital management method for development of enterprise business activities.