Research on the Impact of Corporate Cash Flow Management on Profitability

Yiwen Wang

doi:10.54097/djkqmq13

Authors

Yiwen Wang

DOI:

https://doi.org/10.54097/djkqmq13

Keywords:

Cash flow management; profitability; cash holding level; cash turnover efficiency; financial performance.

Abstract

The level of corporate cash flow management is related to the survival and development of enterprises and value creation. This study explores the impact mechanism of corporate cash flow management on profitability and empirically analyses a sample of Chinese A-share listed companies by constructing a fixed-effects regression model. The study finds that the level of cash holding has an inverted U-shaped relationship with corporate profitability; net cash flow from operating activities is significantly and positively related to corporate profitability; cash flow volatility has a negative impact on profitability; and improved cash turnover efficiency can effectively enhance corporate profitability. These results provide theoretical basis and practical guidance for enterprises to optimise cash flow management and enhance profitability.

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