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The goals of enterprises’survival and development is to create enterprise value, good working capital management is an important guarantee of value creation. To some extent, the level of enterprises’competitiveness and profitability depends directly on their working capital management and operation. At present, many enterprises do not have a clear working capital policy, they only pay attention to the traditional single working capital account, such as cash, accounts receivable, inventory and so on. But they do not have the optimal control standards about the liquidity assets investment and finance. In the process of making working capital policies, they do not take into account the enterprise value; many of them only depend on the acting experience, so it is impossible to get a good financial position. So, how to manage the daily working capital and make policy scientifically to improve enterprise value is a serious problem.In this paper, firstly, we review the research of working capital management, and describe some theories of working capital management and enterprise value. Secondly, we collect listed real estate companies’working capital management data of five consecutive years among 2005 and 2009.From the descriptive statistics, we find that from 2005 to 2009, Chinese real estate industry’s working capital investment policy was gradually from tight to wide, working capital financing policy is radical. Secondly, we make a fixed effects model in order to study the relation of working capital management and the enterprise value. From the empirical results, we find that: accounts receivable turnover, inventory turnover, current assets to total income ratio, cash rate and enterprise value was negative correlation , accounts payable turnover, firm size and enterprise value was a positive correlation.Finally, according to the empirical conclusion, we find several problems of Chinese listed real estate companies, such as the working capital liquidity is too high, cash rate is too low , the efficiency of working capital management is too low and so on .We make some measures to improve the efficiency of working capital management, such as integrating the enterprise’s working capital management into the value chain management, optimizing the working capital structure, developing performance working capital evaluation indicators and so on.
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