Research On The Influence Of Internal Control Quality On Working Capital Management Efficiency

In a narrow sense,working capital is the current assets after the removal of current liabilities.The management of working capital involved in this paper is the management of current assets and current liabilities.Existing industry difference is one of the characteristics of working capital management.This paper chooses the Listed Retail Industry in Shanghai and Shenzhen as the research object because the demand of current assets turnover in retail industry is higher than that in other industries,and the proportion of current assets is also higher than that in other industries.This is very helpful for us to study working capital management.It's easier to find problems and easier to solve problems.Since December 11,2004,China has opened up to foreign retail businesses other than fertilizer and automobiles.In just one year,80%of the world's 50 largest retail enterprises have entered the Chinese market,and the competition between Chinese and foreign retailers will become more intense.If China's retail industry wants to win from this kind of Chinese and foreign market competitors,it must do everything possible to improve operational efficiency and reduce unnecessary links in the process of operation.But for enterprises,the management can not easily change the long-term assets and long-term sources of capital,but the current assets and current liabilities can be easily adjusted,that is,working capital management.And some studies have confirmed that the improvement of working capital management efficiency helps to improve the operation performance of enterprises.An important goal of the internal control system is to ensure the reliability of the financial report and the effective operation of the daily operation of the company.The internal control system is the fundamental guarantee for an enterprise to carry out effective management,and is the important basis for the enterprise to operate and achieve long-term development.Therefore,from the perspective of internal control,this paper will study how to improve the management ability of operating capital,in order to provide a breakthrough point for improving the competitiveness of China's retail industry.After excluding the samples with missing indicators,this paper selects 79 listed retail companies listed on the Shanghai and Shenzhen main board as the research samples,takes the internal control index published by the DIB internal control and risk management database in 2016 as the index to evaluate the quality of internal control,and takes the listed company in 2016 published by the Cathay Tai'an database as the index to evaluate the quality of internal control.Inventory turnover rate,accounts receivable turnover rate,accounts payable turnover rate and cash turnover rate are used as the indicators to evaluate the ability of operating capital management of enterprises,to explore the impact of internal control quality on working capital management,and to establish a regression model.Through research and analysis,the following conclusions are drawn:internal control index and inventory cycle respectively.Turnover rate,accounts receivable turnover rate,accounts payable turnover rate and cash turnover rate were positively correlated.It shows that the higher the internal control index is,the better the inventory turnover rate,accounts receivable turnover rate,accounts payable turnover rate and cash turnover rate are.That is to say,the quality of internal control of Chinese retail listed companies has a positive effect on working capital management ability.The higher the quality of internal control,the stronger the working capital management ability is.