Determinants of Working Capital Management: Empirical Evidence from Chinese Electronic Industry

This thesis is an empirical analysis to assess the factors that affect working capital management in Chinese firms which operate in electronic industry by exerting descriptive analysis, Pearson correlation, OLS, fixed and random effects model. In this study as dependent variable, cash conversion cycle has been exerted as a measure of working capital management. On the other hand, cash flow, capital expenditure, firm size, sales growth, leverage, return on equity, gross domestic product growth rate and annual inflation rate have been devoted as explanatory variables. The result of this study revealed that the working capital management have significantly negative association with capital expenditure, firm size, and gross domestic product growth rate. Keywords: Working capital management, China, Fixed effects, Random effects