Research On The Impact Of Operating Activities Working Captial Management On Enterprise Performance In Construction Industry

Under the background of China's New Normal,China's construction industry growth slowed,but with the development of Urbanization construction,PPP project,"The Belt and Road Initiatives" and many other strategies,China's construction enterprises in the transformation and development ushered in a new opportunity.In the dual background,such as how to catch the opportunity in the stock of the era of competition to reshape and enhance the competitiveness of the enterprise value has become the primary task of construction enterprises.This paper through literature review found that the academic circles generally think that working capital management is the focus to solve financial problems and to meet the daily operations needs of enterprises.Construction industry as one of the pillar industries of the national economy,the importance of its working capital management is comprehended without being told.However,most of the construction enterprises in our country have the problems of rough management and low efficiency of working capital now.The research on the influence of the working capital management on the enterprise performance has obvious practical significance.At the same time,the existing researches are mostly limited to several individual components of working capital and less study on the whole of the relationship between working capital and corporate performance,and the number of working capital management research based on the channel also pay more attention to the manufacturing industry or the real estate industry.Therefore,this paper studies the effect of construction industry working capital on firm performance from the research results of Wang Zhuquan's working capital management based on channel theory.This paper selects nearly 5 years of China's construction industry listed companies as the research object,choose channel working capital turnover index for a set of variables,the solvency of enterprises,the evaluation index of financial performance and market performance as another group of variables.Through the canonical correlation analysis method,this paper empirically studies the impact of operating activities working capital management on the performance of China's construction industry Companies.The empirical analysis shows that management of working capital management and corporate performance have a high correlation and the correlation is negative,the marketing activities of the working capital turnover is an indicator of the most representative relationship between China's construction enterprises operating activities working capital management and corporate performance,Current Ratio,Specifically speaking:First,the working capital turnover period of marketing activities has the greatest impact on financial performance;Second,purchasing channel working capital turnover period mainly affects the company's operating performance;Meanwhile,procurement channels,production channels and marketing channels of working capital turnover speed and the company's market performance is not significant.According to the conclusion of this study,based on the characteristics of specific industry this paper puts forward two suggestions on how to optimize the efficiency of working capital management from turnover period from the perspective of channel and Performance perspective.It is expected that it can provide a new direction for China's construction enterprises to improve their performance.