Monetary Policy, Working Capital And Corporate Performance

Working capital management as an important content of short-term financial management,its operation and management is directly related to the survival and development of an enterprise.But many enterprises in our country is still not formed a relatively perfect system in working capital management,and failed to improve enterprise's financial management in general.there are still many companies use experience to manage,working capital management issues are still prominent,and in recent years the enterprise bankruptcy cases because of poor working capital management emerge in endlessly.Therefore,how to formulate a scientific and effective working capital management strategy to promote the business development is still worthy of our continued research.Until the 1990's,we began to introduce the concept of working capital to our country,and most existing literature based on the perspective of micro enterprises to study relationship between working capital management and corporate performance,but relatively neglected the combination of macro factors on the enterprise to analyze the problem of the relationship between working capital management and enterprise performance.Therefore,this article tries from the macro monetary policy factors,analyses the related concept and the basic theory summary firstly;Secondly,this article looking for the current study in this field outline and discuss the research value on the basis of the summary of the related literature.Then,based on the Shanghai and shenzhen a-share listed companies in China from 2007 to 2016 as research samples,on the basis of theoretical analysis and the research hypothesis to build model uses empirical method to analyze the change of the enterprise working capital holding under a tight monetary policy environment,and on the basis of the research under the background of different monetary policy tightening(relative to the loose period)working capital management policies and the influence of working capital management efficiency to the enterprise performance;Finally the analysis of the results of the study concluded on the basis of policy proposals were put forward.Through analysis and research,this paper concluded the following conclusion: During the tight monetary policy period,enterprise will increase working capital ownership levels.Working capital management policies on enterprise performance results show that During the monetary policy tightening period,if the working capital investment policy more radical,its profit ability more stronger,and it's more obvious in the non-state-owned enterprise group;during the monetary policy tightening period,if working capital financing policy more radical,the stronger the profitability,and it's also more obvious in the non-state-owned enterprise group,but also found that when the enterprise pay attention to the effective management of working capital,they can't ignore its financial risk factors at the same time,but needs base on its own financial situation to make the rational financing decisions,otherwise it will affect the performance of the enterprise.Working capital management efficiency to the enterprise performance results show that Cash turnover period is smaller during the monetary policy tightening period,the stronger its profitability.Finally,on the basis of summary of full text,this paper put forward improving measures according to this series of problems existed in working capital management listed companies in China.The main innovation of this paper lies in that the research field of vision and innovation of the research content.However,due to the limitation of own capabilities and some objective conditions,there is insufficient on the selection of variables,the macro factors and model building etc,it remains to be further research and perfect follow-up.