Working capital management is an important part of modern enterprise financial management.Working capital is the daily production and operation of enterprises.The most frequently used capital,whether it can be effectively managed,directly determines the orderliness of various production and business activities.To carry out.However,due to the imperfection of the capital market,the cost of acquiring funds from the outside is significantly higher than that of its internal sources.Department of the cost of funds,resulting in enterprises prefer to use their own funds.In particular,small and medium-sized enterprises(SMEs)are more likely to face financing constraints during their capital operation.Therefore,effective management of working capital is particularly important for SMEs.Therefore,this paper mainly selects SME board manufacturing listed companies to study the impact of working capital management on firm performance,and studies the impact of financing constraints on the relationship between the two.This paper selects 415 listed companies in the SME board manufacturing industry from 2012 to 2016,with a total of 2,075 samples.The cash cycle is used to calculate the efficiency of working capital management,and the constituent elements of the cash cycle include accounts receivable turnover period,inventory turnover period and accounts payable turnover period,and the index of total assets return is used when measuring corporate performance.In addition,the existence of financing constraints makes management more cautious in making decisions,which directly affects the role of working capital management on business performance.The article distinguishes the level of financing constraints from the dividend expenditure rate and the external fund procurement costs,and analyzes the role of financing constraints in the relationship between working capital management and corporate performance.It has made innovations in the selection of research content,research perspectives,and research samples.The empirical results of the article show that the working capital efficiency of domestic small and medium-sized manufacturing companies is mainly linearly negatively correlated with company performance.To be precise,reducing the working capital turnover time can have a positive effect on corporate performance.Shortening the inventory turnover days,turnover days of accounts receivable or extending the turnover days of accounts payable can improve the cash flow status and enhance the short-term financial management of the company to promote the company's performance.In terms of management of inventory,we must not only guarantee a certain amount of inventory,but also speed up the turnover period of inventory,thereby increasing net cash flow from operating activities,improving profitability,and promoting corporate performance.Shortening the inventory turnover period and the turnover period of receivables can alleviate the problem of capital occupation to a certain extent,and extending the credit period of payables can improve the quality of earnings.We should pay more attention to shortening the number of receivables turnover days and extending the number of accounts payable turnover days.After reclassifying the degree of financing constraints for all the samples,it was concluded that the reduction in working capital turnover days by companies with higher financing constraints has a stronger effect on the company's performance.The empirical results after adding this variable to the financing constraint show that shortening the cash cycle can also effectively improve the performance of companies with higher capital constraints.Enterprises with high financing constraints,corporate performance is more sensitive to the efficiency of working capital operations. |