| Title: | A Case Study of the Impact of Working Capital Management Practices on Firm Liquidity of Xinghe Retail Group |
| Author: | Chen Xiaolong |
| Advisor: | Dr. Zhang Li |
| Degree: | Master of Business Administration |
| Major: | Finance and Accounting |
| Faculty: | บัณฑิตวิทยาลัย (Graduate School) |
| Academic year: | 2569 (2026) |
| Published: | นำเสนอในที่ประชุมวิชาการ (Conference) The 19th National and International Academic Conference 2026 pp. 996-1006 Conference Publication Year: 2569 (2026) View |
Abstract
Working capital management plays a critical role in determining the financial health of retail enterprises, particularly in emerging markets such as China, where liquidity pressures are common due to competitive sales strategies and fluctuating consumer demand. This study focused on Xinghe Retail Group, a Chinese retail company, to investigate how the efficiency of managing inventory turnover period, accounts receivable period, and accounts payable period affects firm liquidity within the framework of Cash Conversion Cycle Theory.
The objectives of this study was to examine the relationship between inventory turnover period and firm liquidity, the relationship between accounts receivable period and firm liquidity, and the relationship between accounts payable period and firm liquidity.
A quantitative research design was adopted for this study. Financial and operational data from fiscal years 2019 to 2024 were analyzed alongside survey responses collected from 120 employees of Xinghe Retail Group, selected through stratified random sampling. A structured questionnaire was employed as the primary instrument, supported by secondary data from company financial statements. Data collection was conducted electronically, and analysis included descriptive statistics, Pearson correlation coefficients, and multiple linear regression models, all processed using SPSS.
The findings revealed that inventory turnover period and accounts receivable period have significant negative effects on firm liquidity, indicating that longer inventory cycles and delayed receivable collection weaken the company’s ability to meet short-term obligations. In contrast, accounts payable period shows a positive
effect on liquidity, suggesting that extending payment terms with suppliers contributes to stronger cash positions, although the explanatory power of payables is less than that of inventory and receivables.
This study concludes that effective working capital management is essential for maintaining liquidity in retail enterprises. The results confirm the applicability of Cash Conversion Cycle Theory in the Chinese retail context and recommend that companies strengthen inventory forecasting, tighten receivable collection practices, and strategically manage payables to balance liquidity needs with supplier relationships. Future research may expand to comparative studies across industries and adopt longitudinal designs to further validate these relationships.
Keywords: inventory turnover period, accounts receivable period, accounts payable period, firm liquidity