Working Capital Management, Corporate Performance, and Strategic Choices of the Wholesale and Retail Industry in China

Table 5

Determinants of working capital in three strategic types.

Variables	Hybrid strategy	Terminal market strategy	Middle market strategy
WC𝑡−1	0.267∗∗∗ (0.005)	0.500∗∗ (0.000)	0.322∗∗ (0.000)
ITUO𝑡	−0.555∗ (0.038)	−2.795 (0.000)	−0.077∗∗∗ (0.002)
ARTUO𝑡	−0.076∗∗∗ (0.000)	−0.380∗∗∗ (0.010)	−0.361 (0.129)
GSP𝑡	−0.097∗ (0.068)	0.012 (0.964)	0.024∗∗∗ (0.000)
FA𝑡	−3.288∗∗∗ (0.000)	−3.774∗∗∗ (0.000)	−0.232∗∗∗ (0.007)
OCF𝑡	0.382 (0.390)	−1.817∗∗∗ (0.007)	−0.157 (0.178)
Constant	0.876∗∗∗ (0.000)	1.643∗∗∗ (0.000)	0.189∗∗∗ (0.000)
Arellano-Bond test	0.467 (0.641)	−0.527 (0.598)	0.355 (0.723)
Sargan test	10.44 (0.236)	9.70 (0.287)	6.20 (0.625)
Wald test	399.11	1726.35	1220.49

^∗𝑃<0.05.
^∗∗𝑃<0.01.
^∗∗∗𝑃<0.001.
The Arellano-Bond test is a second-order autocorrelation of residuals under the null of no serial correlation.
The Sargan test is a test of the overidentifying restrictions, under the null of instruments’ validity.
A Wald test is the significance of estimated coefficients.