Empirical Study On The Relationship Between Working Capital Management Efficiency And Firm Performance In Photovoltaic Industry

Photovoltaic Industry is a renewable energy industry,which was created because of the development of semiconductor technology and the demand for new energy,and will be the important developing direction of strategic emerging industry in China.In recent years,the rapid development of photovoltaic industry in our country greatly pushes the development of other related industries and improves the level of our country's economic development and the sustainable development ability,which gradually shows its prominent strategic position in our national economy.In the face of such a development opportunity,our Photovoltaic Industry are also encountering challenges from internal and external aspects.External market competition is intensifying and the trade frictions are increasing.Because of the problem of periodic overcapacity,the industry turns into the depth adjustment stage.It is urgent for the photovoltaic industry in our country to find ways to solve the problem about how to correctly grasp the current situation of development,actively respond to the complex development problem,improve business performance,and realize the comprehensive harmonious development of the enterprises.Photovoltaic industry is a capital-intensive industry,which means there is a inseparable relationship between enterprises and the capital in the whole process of business.Among all the capital,working capital is the most liquid component.Effective turnover of working capital,therefore,is the base of enterprise capital and can maintain the normal operation of enterprise in such different stages as the supply,production,and sale.It is also a necessary condition for the survival of enterprises in the external competition.Furthermore,the working capital takes up the majority of the general working capital,so it is vital for photovoltaic industry to manage the working capital for managing business activities,and its efficiency of management will directly affect the risks and benefits of enterprises,which is the key factor that influences the performance of enterprises.Based on the above consideration,this paper chooses the Photovoltaic Industry marketing companies as research cases,and carries out study on the relationship between working capital management efficiency and firm performance.From the perspective of channel management theory,it further divides the working capital for managing business activities into three single channel working capital,namely,procurement working capital,production working capital,and marketing working capital.Through a concrete analysis of the empirical research results,a basic research conclusion of this paper is formed.There is a positive relationship between channels of working capital management performance and firm performance,so it is the relationship between management performance of working capital for managing business activities and firm performance.Moreover,year is also the significant factor affecting firm performance.Finally,the paper puts forward some policy recommendations in order to provide theoretical guidance for the improvement of management of channel working capital,so as to enhance the overall performance of the photovoltaic industry in our country.