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Aug 20, 2022 · Diverse components of current assets and current liabilities should be managed in such manner that an organization is able to keep appropriate liquidity structure. Adequate liquidity capacitates...
Sep 14, 2019 · Management of liquidity and liquid assets focuses on cash inflows and outflows along with a trade-off between liquidity versus investment of surplus cash in order to improve profitability.
- Eleonora Kontuš, Damir Mihanović
- 2019
Jan 1, 2019 · Management of liquidity and liquid assets focuses on cash inflows and outflows along with a trade-off between liquidity versus investment of surplus cash in order to improve profitability.
that higher asset liquidity reduces the cost of capital by more for firms that face more competitive risk in product markets, have less access to external capital or are closer to default, and for those facing negative demand shocks. Our results suggest that asset liquidity is valuable to firms and, more generally,
- Hernán Ortiz-Molina, Gordon M Phillips, Gordon M Phillips
- 2010
understanding of why liquid assets are so high, vary so much across banks, and increase so much after the GFC. In this paper, we address this gap in the literature. We show that the transaction and precautionary motives for holding liquid assets that play an important role for nonfinancial firms and typically serve as -
Liquid asset holdings play a critical role in the health of the financial system and in the financial strength of individual banks. Although these holdings have no credit risk, they have interest can rate risk.
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• The ability to convert assets into cash (or cash equivalent) without significant loss. If a business has good liquidity they will be able to meet their maturing obligations promptly, earn trade discounts, benefit from a good credit rating, etc. http://www.americancashflow.com/bcnucapital/Glossary.html