A Empirical Study On Working Capital Management And Corporate Performance Under The New Normal

China's Economy New Normal means that some new characteristics have been appeared in the process of economic developing,shifting down economic growth,optimization and upgrading of economic structure need to be continued and economic growth should be driven by innovation not by factors and investment.It has become the focus of attention whether there exists new changes in the relationship between working capital management and corporate performance under the New Normal.This paper compares the results of the empirical research of working capital management and corporate performance before and after the new normal respectively,and we find out: before the New Normal,the company's working capital investment policy index significantly positively related to current assets ratio and corporate performance,but under New Normal both have no significant positive correlation.Before and after the New Normal,the company's working capital financing policy indicators are significantly positively related to current liabilities ratio and corporate performance.Under the New Normal,working capital management efficiency and corporate performance is significantly related,while before the New Normal,working capital management efficiency is positively correlated with corporate performance relationship,but not significantly;the indexes of receivable days and inventory days are significantly and negatively related with ROE separately before and afterthe New Normal;there is a significantly positive relationship between the index of payable days and corporate performance under the New Normal,but the positive relationship is not significant before the New Normal.In addition,we also compared the empirical results of the relationship between three control variables and corporate performance before and after the New Normal respectively.The sustainable growth rate is significantly and positively connected with the corporate performance before and after the New Normal;before the New Normal the financial leverage is significantly and negatively related with the corporate performance,but the relationship becomes significantly positive under the New Normal;before the New Normal the corporate size is significantly and positively connected with the corporate performance,however,the positive relationship is non-significant under the New Normal.Based on the results,we suggest as below: renew the current assets/total assets ratio,carry out continually the radical financing strategy of working capital;shorten the indexes of receivable days and inventory days,prolong the indexes of payable days.In addition,according to the relationship between the control variables and corporate performance,the advice is given as below:improve the sustainable growth rate,adjust the financial leverage and take advantage of the interest shield effect,and make the corporate size in an appropriate condition and carryout the supply-side structure reform.