A study on working capital and liquidity – empirical results of the motor machinery industry and the automobile industry

• Main Authors: Liu,Chia-Hao, 劉家豪
• Other Authors: KO,CHIUNG-FENG
• Format: Others
• Language: zh-TW
• Published: 2019
• Online Access: http://ndltd.ncl.edu.tw/handle/xj7426

碩士 === 東吳大學 === 會計學系 === 107 === Working capital is the key to the success of the company's operations, but also the lifeline of the company, because the amount of working capital is related to the short-term solvency of the company, the working capital that the company can control is not only a way to improve the performance of the company, but also the key to the company's survival. The research direction of this study is to explore the relationship between the working capital management and the financial traits related to the liquidity of the enterprises of Taiwan, and select the motor machinery industry and the automobile industry as the research object, in response to the recent international impact on the two industries The results of this study show that the cash conversion cycle of the motor machinery industry and the automobile industry company is significantly positively correlated with the working capital of the enterprise. When the enterprise's cash conversion cycle is long, it means that the company recovers cash slowly, so it needs to be higher. The working capital level, while the short cash conversion cycle, means that the company can recover cash faster, so the extra funds can be used for investment or for additional purposes. The six liquidity measures of the two industries are significantly related to working capital, and most of them are the same as expected. Therefore, it can be inferred that when the liquidity of the enterprise is maintained in a better state, the working capital of the enterprise is also higher.