Relationship Between Working Capital Management And Profitability Of Chinese Gem Listed Companies

Working capital is put forward in the 1930 s, we usually understand working capital refers to the daily production and operation of the enterprise the difference between the current assets and current liabilities. From material purchasing, production, enterprise to subsequent sales and so on, so as to realize the process of circulation of money. So, working capital is equal to the blood of the enterprise, the reasonable working capital is of great significance for the development of enterprises.In this paper, the research mainly focuses on the gem listed companies, by discussing the gem listed companies working capital management status in our country, the enterprise working capital management policies, working capital management efficiency influence on corporate profitability, then for the gem listed companies working capital management to provide some reasonable Suggestions. This paper USES the combination of empirical and normative research methods. First, combining normative research of previous scholars for working capital management. Secondly, an empirical analysis of the gem listed companies in our country, studies the enterprise working capital management policy and management efficiency of the influence of corporate profitability.This article is divided into five parts, the first part of the introduction, this part introduced this article selected topic background, value and theoretical significance, by putting forward the research content, goal and key problems so as to formulate innovative points, namely the gem listed companies working capital management policies and management efficiency impact on corporate profitability; The second chapter is literature review part, through the literature review and research of home and abroad, thus learning scholars research on working capital management; The third chapter the theoretical part, this paper puts forward the working capital, cash cycle, working capital management policy and management efficiency, the relationship between working capital management and corporate profitability, etc.; The fourth part entered the stage of empirical research of this paper, through the hypothesized, sample selection, data collection, the design of variable and model building, using spss16.0 software data for this article to descriptive statistics, correlation and multiple regression analysis, to verify the hypothesis proposed in this paper, and the working capital financing policy, investment policy and working capital management efficiency from three aspects, respectively, to study the relationship between corporate profitability, and export conclusions; The fifth part from the fourth part of conclusions, and then puts forward relevant policies and Suggestions, so as to better promote the development of the gem listed companies.In this paper, the study found that China's GEM listed companies are mostly used is aggressive working capital financing policy and steady working capital investment policy, and found that the profitability of the corporate investment policy radical degree and the enterprise into negative correlation and aggressive working capital financing policy and the enterprise's profitability exist positive correlation; the efficiency of working capital management, cash cycle including the receivable turnover period, payable receivable turnover period, the inventory turnover period on the profitability of the business there are negative correlation should be. So through the study of the theory of empirical study, the GEM Listing Corporation are high-tech industry, and its rapid development can also reflect the level of technological innovation of our country. Improve the management efficiency of the gem operating capital, and provide some advice and suggestions for its better and healthier development in the environment of China.