Research On The Influence Of Business Credit On Working Capital Management Efficiency Under Different Financing Constraints

Agricultural listed companies play an important role in the development of agricultural economy in China.Compared with other industries,agricultural enterprises generally face the problems of long working capital turnover period and low return on capital.Working capital,as the most liquid capital in the business activities of an enterprise,is related to the smooth operation of its daily production and operation,such as purchase,production and marketing,and is the key link to realize the profit and value-added of an enterprise,which has great significance for the development of an enterprise.With the continuous development of global integration and information technology,The customers demand of the low price and high quality products can no longer be satisfied by own strength.Therefore,the focus of working capital management gradually shifted from relying on its own development to the perspective of stakeholders.As a result,commercial credit,as a financing method,comes into being when enterprises conduct daily transactions with suppliers and customers,and is gradually valued and widely used.However,Agricultural listed companies are restricted by the characteristics of the industry,capital market and other conditions,and generally face the problem of credit financing constraints.Therefore,this thesis further studies the mechanism that business credit,an alternative financing method for bank loans,makes impact on the efficiency of working capital management among agricultural listed companies with different degrees of financing constraints,and the study on working capital management is expanded from the perspective of capital source.This thesis takes the A-share agricultural listed companies in China from 2009 to 2017 as a sample.Business credit includes three aspects: business credit between enterprises and suppliers,business credit between enterprises and customers,and total business credit.The efficiency of working capital management is calculated by using the working capital turnover period of operating activities.Through multiple regression analysis,the influence of commercial credit on working capital management efficiency is analyzed.Samples are divided into high and low financing constraints groups by using the SA index to compare and analyze the impact of financing constraints on the relationship between business credit and working capital management efficiency.The results show that: business credit with suppliers,business credit with customers,and total business credit are negatively correlated with working capital turnover period,indicating that increasing business credit can promote the efficiency of working capital management;after grouping the samples according to the degree of financing constraints,it is found that the higher the financing constraints,the stronger the negative effect of the business credit between enterprises and suppliers,the business credit between enterprises and customers,and the total business credit on the working capital turnover period of operating activities,and the higher the efficiency of working capital management of enterprises.The above empirical results show that increasing commercial credit can effectively improve the working capital management efficiency,while business credit is more sensitive to the efficiency of working capital management of enterprises with higher degree of financing constraints.Based on the above conclusions,it is concluded that commercial credit has operational and financing effects.It can not only promote the sales of enterprises,stabilize business relations,but also solve the financing difficulties of enterprises with high financing constraints and improve the efficiency of working capital management.This thesis puts forward the following suggestions according to the characteristics of agricultural listed companies.Firstly,advocating to establish information sharing mechanism in agricultural listed companies,strengthen the coordination and management of material flow and capital flow,and realize real-time information sharing among stakeholders,which is the basis of improving the efficiency of working capital management in industrial chain as a whole.Secondly,selecting suitable suppliers and customers to establish a stable network of cooperative relations,and then paying attention to the use of business credit on the basis of cooperative relations,alleviate the financing constraints of enterprises.Finally,giving consideration to both suppliers and customers in order to increase the efficiency of business credit use and improve the level of working capital management of enterprises.