Research On The Impact Of Working Capital Management On Corporate Performance

As the "blood" of a company,working capital has a significant impact on the company’s development and even determines whether the company can survive.The special equipment manufacturing industry is a kind of capital-intensive company,which requires more working capital to maintain daily operations.Proper management of working capital is conducive to reducing capital occupation,improving the speed of capital turnover and improving corporate performance.In recent years,China’s special equipment manufacturing companies’ capital turnover difficulties,working capital management level lag,and other problems constantly highlight,restricting the development of China’s special equipment manufacturing industry.Therefore,the working capital management of special equipment manufacturing industry is very important.This paper forms a research idea by reviewing and summarizing the relevant literature at home and abroad,and clarifies the research content by combing the relevant concepts and theoretical foundations.It takes 116 special equipment manufacturing listed companies as the research object,selects five years of financial data as the research sample,analyzes the current situation of working capital management in the special equipment manufacturing industry through descriptive statistics,puts forward the empirical research hypothesis of this paper in combination with working capital management policy theory and working capital management efficiency theory,which is based on channel theory,and studies the influence of working capital management on company performance by establishing the multivariate linear regression model.The results shows that:There is a significant negative correlation between current asset ratio,current debt ratio,working capital turnover period of operating activities,working capital turnover period of production channels,the working capital turnover period of the marketing channel and the company performance,while there is a significant positive correlation between working capital turnover period of the procurement channel and company performance.Based on the results of empirical analysis and the current problems of the sample company,this paper makes recommendations for the company to improve its performance,and finally draws conclusions and previews prospect for the future research.This paper studies the influence of working capital management on company performance from two aspects of working capital management policy and working capital management efficiency.When measuring the efficiency of working capital management,the evaluation method of working capital management efficiency based on channel theory is adopted,so the research is more comprehensive.The results of this paper provide reasonable suggestions for the improvement of working capital management and company performance of special equipment manufacturing companies,and also have a certain reference value for the improvement of related company performance.