Abstract
Power companies are mainly capital-intensive companies, and the efficiency of working capital management has a profound impact on the sustainability and stability of the development of power companies. This paper uses the DEA-CCR method to measure the working capital management efficiency of listed Chinese power companies from 2014 to 2019, and uses the Tobit regression method to analyze the factors that affect the working capital management efficiency. The results show: (1) The overall efficiency of working capital management of listed Chinese power companies is low, and there is still much room for improvement. (2) Decomposition of comprehensive technical efficiency results in pure technical efficiency and scale efficiency, both of which have an important impact on the overall working capital management efficiency of listed Chinese power companies. (3) Among listed electric power companies, the overall working capital management efficiency of central enterprises is lower than that of non-central enterprises. In response to the above conclusions, this article proposes measures such as reforming the working capital management system, optimizing the profitability of core businesses, and improving supply chain capital management to improve the working capital management efficiency of listed electric power companies.
Highlights
Working capital management is a key part of financial management
The CCR model can cash outflow of investment activities, which measures the decompose the efficiency calculation results to obtain pure level of investment income generated by investment technical efficiency and scale efficiency, which reflect the activities
After decomposing working capital management efficiency into pure technical efficiency and scale efficiency, it can be concluded that both of them play an important role in improving working capital management efficiency and are both key reform drivers and improvement directions
Summary
Working capital management is a key part of financial management. The profitability of an enterprise in a certain period depends on the efficiency of its working capital management. Working capital management has become the focus of modern business development. Today's enterprises focus on the two core links of operation and investment. Electricity listed companies are capital-intensive companies with a huge amount of working capital, so good working capital management is important for electric power companies. To analyze the current status of working capital management efficiency of listed electric power companies, this paper uses DEA analysis method to select typical power companies to measure working capital management efficiency.And this paper uses Tobit model to analyze the influencing factors
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