Research On Strategic Driving Factors And Economic Consequences Of The Working Capital Scale Based On Enterprise

Working capital,also known as working capital,is "the flow of blood" of the enterprise.It continuously cycles in the process of production and operation,which is the guarantee of continued operation of enterprise.Working capital involves a series of economic activities,for example,purchasing,production,sales and so on,throughout the supply chain of the enterprise to maintain the day-to-day operation of the enterprise,create and implement value for the enterprise.Under the background of the era of economic globalization,the case that the enterprise facing financial crisis or even bankruptcy for working capital problems happens everywhere.More and more people have realized that working capital played a crucial role in the sustainable development of enterprises in the era of fierce competition.The gem listed companies shoulder historical mission to build "the NASDAQ".Though the development of gem listed companies is very rapid,it still faced with many difficulties,as its scale is generally small,operation stability is poorer,technology is not mature and so on.Overall its risk is much higher than the motherboard market.Working capital is playing an indispensable role to maintain the normal operation of the enterprise.It is not only conducive to management and control working capital,but also synergy between working capital scale and the supply chain by researching on the strategic driving factors and economic consequences of the working capital scale in the gem listed corporation.Then,it is helpful for promoting the growth of the scale and benefit,as well as realizing the maximization of the enterprise value,so as to promote the sustainable development of the gem market.Based on this,this paper selects 151 listed companies on GEM in China during 2010 to 2013 as the research sample.On the basis of reviewing and commenting on literatures of domestic and foreign scholars,the paper expounds the related content of working capital theory,based on the resources of the strategic management theory,the theory of supply chain management and the organizational environment theory.The paper draws lessons from the research paradigm of strategic management to take the internal and external environment as the breakthrough point to put forward the research hypothesis and construct the basic model of the strategic driving factors of the working capital scale.Then,the trade-off theory of risk and return leads to the relationship between working capital scale and business performance,and constructs the model.Finally,feasible suggestions is put forward by an empirical analysis of the strategic driving factors and economic consequences of working capital scale.The empirical results show that:1)The fixed assets investment,unique investment and debt ratio have a negative effect on working capital scale.2)The higher efficiency of enterprise supply chain management,the less working capital scale is held.3)The intensity of product market competition is more intense,the enterprise has more working capital scale.4)A favorable business environment will provide a development platform for enterprises to expand reproduction,so it makes the enterprise hold more working capital scale.5)In addition,the empirical result of economic consequences of working capital scale show that the relationship is not a simple linear relationship,but an inverted U-shaped between corporate performance and working capital scale,which implies the existence of an optimal working capital scale to enable enterprise performance to maximize.Finally,according to above findings,this paper provides some reasonable suggestions to optimize working capital scale for gem listed corporation,so that the enterprise performance of gem listed corporation is enhanced to realize the maximization of enterprise value.