The Influence Of Ownership Nature And Working Capital Scale On Enterprise Value

As a fundamental part of the company's short-term financial management,working capital is an important basis for measuring short-term solvency and managing corporate liquidity.In the course of business operations,the company's reasonable net working capital significantly affects the investment scale on the value of the company.At present,China's market is undergoing a crucial period of transformation.As the gradual deepening of China's economic system reform,for enterprises,when companies are in different ownership natures,there is a difference in the scale of investment in net working capital of enterprises,it will affect the value of the company.Therefore,it is of great importance to the study on the impact of the scale of working capital investment on corporate value under different ownership.Based on the study status at home and abroad,this graduation thesis takes the working capital investment scale as the entry point,and studies the scale of working capital investment with the application of the working capital management theory,principal-agent theory and property rights theory.This paper selects 5008 data from 626 manufacturing listed companies in Shanghai and Shenzhen in 2009-2016 as research samples,and divides the net working capital into two parts: large net working capital investment scale and small net working capital investment scale.The difference in the impact of the two parts on the value of the enterprise further uses the interest guarantee multiple,the company size,and the dividend payment rate as the criteria for financing constraints.The sample is divided into two categories,that is,with financing constraints and without financing constraints to test the causes of the differences.The results of the study show that state-owned enterprises maintain a low level of net working capital,which is attributed to the fact that state-owned enterprises are subject to soft budget constraints,making it unnecessary for state-owned enterprises to maintain a high level of working capital to resist risks.When the level of net working capital investment is low,the value of the company increases as the size of the company's working capital increases;when the net working capital investment of the company is high,the company continues to invest in the scale of working capital,and the value of the company will decrease.Private enterprises,under the influence of stronger financing constraints,adopt a high level of working capital scale to prevent business risks.Therefore,as a whole,increasing the scale of net working capital investment by enterprises will have a positive impact on corporate value,but it will have a greater impact when corporate net working capital remains at a high level.This result stems from the fact that in recent years,China's comprehensive deep-going state-owned enterprise reforms have adopted �three go,one drop�,namely,de-capacity,de-stocking,de-leverage,and cost-reduction,which have greatly reduced the scale of state-owned enterprises' working capital and allowed enterprises to maintain a Low level of working capital.The continuous improvement of the modern enterprise system and the stateowned asset management system and the continuous increase in the supervision of the prevention of the loss of state-owned assets have created a favorable environment for the future development of state-owned enterprises,making the state-owned enterprises over-invested in previous working capital.When private enterprises develop to a certain scale,their net working capital investment remains at a high level.As the company's market influence gradually increases,the market's bargaining power and risk prevention gradually increase.At this time,the investment of working capital is increased.Only in this way can we further increase the value of the company,which is affected by the financing constraints,and increase the value of the company by resisting the operational risks.In conclusion,based on the study conclusions,two suggestions are proposed on the issue of the scale of corporate working capital investment.That is: 1.Enterprises should proactively adjust the scale of their working capital.The nature of the property rights in the study affected the scale of working capital investment,which has practical significance for the development of a reasonable and scientific working capital scale for enterprises with different property rights.Among them,China's private enterprises affected by financing constraints,need to pay more attention to working capital management and their own surplus capital accumulation,improve capital utilization efficiency,reduce capital costs,so that the acquisition of corporate investment funds is more dependent on the active adjustment of the size of working capital.State-owned enterprises should do a good job of managing their working capital so that the scale of their working capital will approach the optimal scale,increase their operating efficiency,and maximize their value.2.Deepen the reform of state-owned enterprises and establish an effective internal supervision system.In recent years,the deepening of state-owned enterprise reforms has continued to be advanced,and reforms have achieved initial success.The government will continue to increase the supervision of state-owned enterprises,increase the operating efficiency and investment efficiency of state-owned enterprises,and meanwhile accelerate the pace of improving the capital market.In the future,it is still necessary to step up efforts to promote the reform of state-owned enterprises,improve supervision measures,and create a favorable environment for the development of the market economy.