Relevant bibliographies by topics / Theory of liquidity

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  1. Journal articles
  2. Dissertations / Theses
  3. Books
  4. Book chapters
  5. Conference papers
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Academic literature on the topic 'Theory of liquidity'

Author: Grafiati
Published: 19 February 2023

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Journal articles on the topic "Theory of liquidity"

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Buchner, Axel. "Equilibrium liquidity premia of private equity funds." Journal of Risk Finance 17, no. 1 (January 18, 2016): 110–28. http://dx.doi.org/10.1108/jrf-07-2015-0068.

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Purpose – The purpose of this paper is to propose a novel theory of the equilibrium liquidity premia of private equity funds and explore its asset-pricing implications. Design/methodology/approach – The theory assumes that investors are exposed to the risk of facing surprise liquidity shocks, which upon arrival force them to liquidate their positions on the secondary private equity markets at some stochastic discount to the fund’s current net asset value. Assuming a competitive market where fund managers capture all rents from managing the funds and investors just break even on their positions, liquidity premia are defined as the risk-adjusted excess returns that fund managers must generate to compensate investors for the costs of illiquidity. The model is calibrated to data of buyout funds and is illustrated by using numerical simulations. Findings – The model analysis generates a rich set of novel implications. These concern how fund characteristics affect liquidity premia, the role of the investors’ propensities of liquidity shocks in determining liquidity premia and the impact of market conditions and cycles on liquidity premia. Originality/value – This is the first paper that derives liquidity premia of private equity funds in an equilibrium setting in which investors are exposed to the risk of facing surprise liquidity shocks.
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Culham, James. "Revisiting the concept of liquidity in liquidity preference." Cambridge Journal of Economics 44, no. 3 (December 1, 2019): 491–505. http://dx.doi.org/10.1093/cje/bez057.

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Abstract This paper revisits Keynes’s theory of liquidity preference to emphasise its reliance on liquidity. By clarifying the meaning of ‘liquidity’ in the context of the theory, it is argued that liquidity preference is not based on the demand for money, the most tradable asset, or a theory of bearishness. Instead, liquidity preference represents a demand for price-protected (capital-safe) assets, most directly inside and outside money, but also cash-equivalent quasi-money such as self-liquidating assets and security repurchase agreements (repo). The theory of liquidity preference explains that the public is willing to forgo interest income to hold short-term price-protected assets due to the capital and price uncertainty associated with relying on market liquidity, or how easy it is to convert an asset into money. It follows that the rate of interest is a monetary phenomenon and is determined independently of saving and investment.
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Jossa, Bruno. "Liquidity Preference Theory or Loanable Funds Theory." Archives of Business Research 9, no. 8 (August 14, 2021): 87–91. http://dx.doi.org/10.14738/abr.98.10544.

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In Keynes’s approach, interest rates are driven up by rises in demand for money and scaled down by rises in money supply. On the contrary, this paper argues that neither of these propositions will stand the test of scrutiny. Keynes traced demand for money to three main factors, the transaction, precautionary and speculative motives, but rises in demand associated with the transaction motive do not necessarily drive up the rate of interest. The paper shows also that the liquidity preference theory and the loanable funds theory are different theories and that the former is faulty, while the latter is correct.
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Snippe, Jan. "Loanable funds theory versus liquidity preference theory." De Economist 133, no. 2 (June 1985): 129–50. http://dx.doi.org/10.1007/bf01676404.

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Cushman, David O. "The Liquidity Trap Theory: Comment." Southern Economic Journal 56, no. 3 (January 1990): 807. http://dx.doi.org/10.2307/1059383.

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Beranek, William, and Richard Timberlake. "The Liquidity Trap Theory: Reply." Southern Economic Journal 56, no. 3 (January 1990): 812. http://dx.doi.org/10.2307/1059384.

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Diamond, Douglas W., and Raghuram G. Rajan. "Liquidity Risk, Liquidity Creation, and Financial Fragility: A Theory of Banking." Journal of Political Economy 109, no. 2 (April 2001): 287–327. http://dx.doi.org/10.1086/319552.

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Asriyan, Vladimir, William Fuchs, and Brett Green. "Liquidity Sentiments." American Economic Review 109, no. 11 (November 1, 2019): 3813–48. http://dx.doi.org/10.1257/aer.20180998.

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We develop a rational theory of liquidity sentiments in which the market outcome in any given period depends on agents’ expectations about market conditions in future periods. Our theory is based on the interaction between adverse selection and resale considerations giving rise to an intertemporal coordination problem that yields multiple self-fulfilling equilibria. We construct “sentiment” equilibria in which sunspots generate fluctuations in prices, volume, and welfare, all of which are positively correlated. The intertemporal nature of the coordination problem disciplines the set of possible sentiment dynamics. In particular, sentiments must be sufficiently persistent and transitions must be stochastic. We consider an extension with production in which asset quality is endogenously determined and provide conditions under which sentiments are a necessary feature of any equilibrium. A testable implication is that assets produced in good times are of lower average quality than those produced in bad times. (JEL D84, D82, E32, E44, G12)
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van den End, Jan Willem. "Applying Complexity Theory to Interest Rates: Evidence of Critical Transitions in The Euro Area." Credit and Capital Markets – Kredit und Kapital: Volume 52, Issue 1 52, no. 1 (January 1, 2019): 1–33. http://dx.doi.org/10.3790/ccm.52.1.1.

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Abstract We apply complexity theory to financial markets to show that excess liquidity created by the Eurosystem has led to critical transitions in the configuration of interest rates. Complexity indicators turn out to be useful signals of tipping points and subsequent regime shifts in interest rates. We find that the critical transitions are related to the increase of excess liquidity in the euro area. These insights can help central banks to strike the right balance between the intention to support the financial system by injecting liquidity and potential unintended side-effects on market functioning. Zusammenfassung Wir wenden Komplexitätstheorie auf Finanzmärkte an, um zu zeigen, dass die vom ­Eurosystem geschaffene Überschussliquidität zu kritischen Übergängen bei der Konfiguration der Zinssätze geführt hat. Komplexitätsindikatoren erweisen sich als nützliche Signale von Kipppunkten und nachfolgenden Regimeverschiebungen bei Zinssätzen. Wir stellen fest, dass die kritischen Übergänge mit dem Anstieg der Überschussliquidität im Euroraum zusammenhängen. Diese Einblicke können Zentralbanken helfen, das richtige Gleichgewicht zwischen der Absicht, das Finanzsystem mit zusätzlicher Liquidität zu unterstützen, und möglichen unbeabsichtigten Nebenwirkungen auf das Marktgeschehen zu finden. JEL Classification: E43, E58, E52
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Beranek, William, and Richard H. Timberlake. "The Liquidity Trap Theory: A Critique." Southern Economic Journal 54, no. 2 (October 1987): 387. http://dx.doi.org/10.2307/1059323.

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Dissertations / Theses on the topic "Theory of liquidity"

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Bibow, Jörg. "Essays on liquidity preference theory." Thesis, University of Cambridge, 1995. http://ethos.bl.uk/OrderDetails.do?uin=uk.bl.ethos.388765.

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Killeen, William P. "Essays on liquidity." Thesis, Queen's University Belfast, 2002. http://ethos.bl.uk/OrderDetails.do?uin=uk.bl.ethos.269060.

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Panyanukul, Sakkapop. "Liquidity and international bond pricing." Thesis, University of Warwick, 2010. http://wrap.warwick.ac.uk/35533/.

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This thesis focuses on the liquidity risk and its impact on bond prices of the international markets and comprises three self-contained research papers. In the first research paper, we examine the role of the liquidity in the pricing of sovereign U.S. dollar bonds in emerging markets. We extend Acharya and Pedersen’s (2005) liquidity-adjusted capital asset pricing model to the bond market and find that both liquidity level and multiple liquidity risks are priced factors for the expected excess return of U.S. dollar bonds issued by developing countries. The combined effects of liquidity risk and liquidity level can explain as much as 1% per annum extra yield spread for the countries that have higher liquidity betas. Countries, which have a high correlation with the global market or U.S. stock market, have higher required bond returns than low correlation countries. The liquidity factor helps explain the credit spread puzzle of high yields. Our empirical results also support a flight to liquidity across the studied countries and are robust after controlling for bond characteristics and the U.S. risk factors. The second research paper finds that both liquidity level and liquidity risk are important in explaining the cross-section of domestic government bond returns in 39 countries (both emerging and developed) around the world. After controlling for other market factors and bond characteristics, liquidity level and liquidity risk together can explain as much as 0.41% per annum of extra yield for the highest versus the lowest liquidity risk countries, which are China and Argentina respectively. There is also an evidence of liquidity spillovers from the U.S. equity market to domestic bond markets around the world. Employing a conditional model, which allows both time-series and crosssectional variations in liquidity betas, we find that the impact of liquidity risk is time varying across two different regimes: it increases in times of high uncertainty and is always larger in emerging than in developed countries. Nevertheless, the price of risk or premium required by investors for holding this time-varying risk is relatively modest. The third research paper examines whether liquidity spillovers between sovereign bonds are systematic or idiosyncratic in character. A theoretical model is developed, which demonstrates that idiosyncratic spillovers require returns to be correlated, whereas systematic spillovers require volatilities to be correlated. We apply the model to sovereign bonds in 35 emerging markets, aggregated for some analyses into Asian, European and Latin American regions. We find liquidity spillovers mainly from Latin America to the other regions and they are both systematic and idiosyncratic in character. Further cross-sectional analysis (by country) and time-series analysis (by region) show that systematic spillovers are more important than idiosyncratic spillovers. The conclusion is that most liquidity risk across emerging bond markets is systematic and therefore cannot easily be hedged away. This has important implications for portfolio selection by fund managers and for the regulation of systemic risk.
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Weber, Guglielmo. "Consumption, liquidity constraints and aggregation." Thesis, London School of Economics and Political Science (University of London), 1988. http://ethos.bl.uk/OrderDetails.do?uin=uk.bl.ethos.262094.

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Culham, James. "A conceptual framework for a theory of liquidity." Thesis, Federation University Australia, 2018. http://researchonline.federation.edu.au/vital/access/HandleResolver/1959.17/165439.

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This study contributes to the understanding of liquidity in two ways. First, it considers the multifaceted nature of liquidity and its relationship with money. Second, it constructs a conceptual framework for a theory of liquidity. The first contribution is achieved by clarifying and categorising the various forms of liquidity to identify those overlooked by the existing literature. The second contribution consists of a realist critique of the literature on liquidity and money to highlight the strengths and weaknesses of each theoretical approach. The study reflects on the attempts to analyse liquidity using moneyless models of perfect barter with the assumption that every commodity exhibits perfect saleability; an assumption that removes any need for a medium of exchange and, moreover, crowds out all other forms of liquidity. It is concluded that, because liquidity is a social and monetary phenomenon, it cannot be analysed with models populated by a representative agent consuming a single commodity. Furthermore, this conclusion is not altered by the introduction of ‘financial frictions’, which are fundamentally at odds with the nature of money. Instead, the clarification of the nature of liquidity forms the basis for an interpretation of Keynes’s theory of liquidity preference that emphasises its reliance on liquidity in general, not money in particular. The study introduces the terms redemption liquidity and exchange liquidity to explain the trade-off that underpins the theory of liquidity preference. Properly interpreted, the theory of liquidity preference can then address many of the deficiencies prevalent in the dominant theories of the rate of interest. The study therefore has implications for monetary policy and asset pricing.
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Lopez-Mejia, Alejandro. "Liquidity constraints, near rationality and consumption." Thesis, Queen Mary, University of London, 1992. http://ethos.bl.uk/OrderDetails.do?uin=uk.bl.ethos.390359.

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Xu, F. "Essays on aggregate liquidity and corporate events." Thesis, City University London, 2009. http://openaccess.city.ac.uk/12029/.

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A sizeable stream of theoretical and empirical research in corporate finance reveals that corporate investment and financing activities in capital markets occur in waves through time, which are accompanied with many abnormal phenomena surrounding and after the announcement of events. Motivated by existing studies in firm-level and aggregate-level liquidity, which suggest the influence of (aggregate) liquidity on the activity and quality of corporate events, the purpose of this thesis is to investigate and understand the role of aggregate liquidity in explaining existing phenomena associated with corporate investment and financing events including mergers and acquisitions (M&A), initial public offerings (IPOs), seasoned equity offerings (SEOs), and, finally, corporate asset sales. Liquidity is an important and special asset for firms operating in imperfect capital markets. At aggregate level, corporate holdings of liquidity and the market provision of liquidity play important roles in capital markets, which inevitably affect the decision making and performance of corporate events. In this research, I investigate whether corporate investment and financing events occurring during high aggregate liquidity markets are fundamentally different from those occurring during low aggregate liquidity markets. Empirical evidences in this research show that the activity and quality of major corporate investment and financing events are substantially influenced by aggregate liquidity. Moreover, many of the market anomalies concentrate in certain aggregate liquidity conditions. For M&A, I find that there are more acquisitions in highliquidity periods, and acquirers buying during high-liquidity markets have significantly higher pre-announcement returns, but lower post-merger abnormal returns. For IPOs and SEOs, results show that there are many more public equity offerings in high-liquidity periods than in low-liquidity periods. Offering firms selling securities during high-liquidity markets have significantly higher occurrences of underpricing (discounting) and suffer larger long-run underperformance. For asset sales, highliquidity divesting firms have better performance measured by firm characteristics and post-sale returns.
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Dalsenius, Martin. "Effects of Stock Market Liquidity on Growth: Empirics and Theory." Thesis, Uppsala University, Department of Economics, 2007. http://urn.kb.se/resolve?urn=urn:nbn:se:uu:diva-8077.

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Historically, it has been difficult to obtain solid data on stock market liquidity for large parts of the world. In recent years, however, the availability of data has improved, but does still have troubles with concentrations to recent years and to relatively wealthy countries. Thus, samples based on balance between industrialized and developing countries may easily come to include very few of the poorest countries. Also, recent theory suggests differences in the impact of stock market liquidity on growth between very poor and other countries. While several papers that have used these data have found significance for liquidity on growth globally, they have also been criticized for potential selection bias and for limited time depth.

In this thesis we construct a sample based on attempting to get the representation of the poorest countries at least reasonably good. We then test the significance of liquidity on growth globally using this sample; we test if there are significant differences between countries of different wealth levels and if the time span is still long enough for the results of our tests to be relevant.

We find that adjusting for the under representation of the poorest countries comes at the expense of getting a very limited time span. The sample became strongly weighted to the mid and late 90s and the impacts of large unsubstantiated fluctuations in global stock prices (the Asian crisis) are evident in the regression results. We conclude that as of today the data simply are not good enough, or extend far enough back in time, for estimating the impact of liquidity on growth globally, or differences between groups of countries, over a relevant time span.

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Ochiai, Hiroshi. "Essays on aggregate dynamics : externalities, liquidity and financial crises." Thesis, University of Nottingham, 2012. http://eprints.nottingham.ac.uk/12525/.

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In the second chapter, we consider a mechanism of unstable fluctuations of aggregate investments by means of a global game approach. For this purpose, we extended a static global game to a dynamic one and paid attention to the effect of past aggregate investments on current profitability. Once this effect of aggregate investments between periods is taken into account, we can show that firms’ equilibrium strategies of investments become highly volatile over time. Moreover, long persistence of high or low economic activity can be explained by this model as well. The third chapter examines the effect of firms’ funding liquidity on macroeconomic dynamics and the role of liquidity markets. Here, we regard liquidity as firms’ accumulated net worth and introduce heterogeneity between firms with regard to their productivities and accumulation of their net worth. From our analysis, we show that under existence of externality between probabilities of liquidity shocks 1) the economy without liquidity markets is highly volatile. 2) Liquidity markets insulate the economy from liquidity shocks. 3) During an unstable economic environment, the economic activity can sharply drop in the existence of liquidity markets. The fourth chapter aims at showing risk shifting behaviour of financial intermediaries in the context of an economic growth model to analyze financial crises. In the low capitalized economy in which a rate of return on safe assets is high and households’ assets are scarce, investing in corporate sectors is more profitable than that of risky assets because the option value from investing in risky assets is low. However, as the economy grows, the rate of return on safe assets is decreasing whereas individual assets are increasing. In this situation, the option values of risky assets are increasing, which gives banks incentive to invest in risky assets leading some of the banks to be insolvent.
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Peiris, Mahatelge Udara. "Essays in money, liquidity and default in the theory of finance." Thesis, University of Oxford, 2010. http://ethos.bl.uk/OrderDetails.do?uin=uk.bl.ethos.543623.

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Books on the topic "Theory of liquidity"

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J, Oliver Michael, ed. The liquidity theory of financial markets. Hoboken, NJ: John Wiley & Sons, 2006.

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Pepper, Gordon T. The liquidity theory of asset prices. Chichester: John Wiley & Sons, 2006.

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Pepper, Gordon T. The Liquidity Theory of Asset Prices. New York: John Wiley & Sons, Ltd., 2006.

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Pepper, Gordon, and Michael J. Oliver. The Liquidity Theory of Asset Prices. Oxford, UK: John Wiley & Sons Ltd, 2006. http://dx.doi.org/10.1002/9781118673423.

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Marco, Pagano, and Röell Ailsa 1955-, eds. Market liquidity: Theory, evidence, and policy. Oxford: Oxford University Press, 2014.

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Diamond, Douglas W. Liquidity risk, liquidity creation and financial fragility: A theory of banking. Cambridge, MA: National Bureau of Economic Research, 1999.

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Roubini, Nouriel. Liquidity models in open economies: Theory and empirical evidence. Cambridge, MA: National Bureau of Economic Research, 1995.

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Consumption, rational expectations, and liquidity: Theory and evidence. New York: St. Martin's Press, 1990.

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Chang, Roberto. Liquidity crises in emerging markets: Theory and policy. Cambridge, MA: National Bureau of Economic Research, 1999.

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Consumption, rational expectations and liquidity: Theory and evidence. London: Harvester Wheatsheaf, 1990.

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Book chapters on the topic "Theory of liquidity"

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Jarrow, Robert A. "Liquidity Risk and Classical Option Pricing Theory." In Liquidity Risk Measurement and Management, 360–75. 2 Clementi Loop, #02-01, Singapore 129809: John Wiley & Sons (Asia) Pte Ltd, 2012. http://dx.doi.org/10.1002/9781118390399.ch16.

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Behr, Andreas. "The Q-theory of investment and the role of internal funds." In Investment and Liquidity Constraints, 5–17. Wiesbaden: Deutscher Universitätsverlag, 2003. http://dx.doi.org/10.1007/978-3-322-82010-5_2.

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Çetin, Umut, Robert A. Jarrow, and Philip Protter. "Liquidity Risk and Arbitrage Pricing Theory." In Handbook of Quantitative Finance and Risk Management, 1007–24. Boston, MA: Springer US, 2010. http://dx.doi.org/10.1007/978-0-387-77117-5_64.

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Cardim De Carvalho, Fernando J. "Post-Keynesian Developments of Liquidity Preference Theory." In Post-Keynesian Economic Theory, 17–33. Boston, MA: Springer US, 1995. http://dx.doi.org/10.1007/978-1-4615-2331-4_2.

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Keynes, John Maynard. "The Psychological and Business Incentives to Liquidity." In The General Theory of Employment, Interest, and Money, 171–84. Cham: Springer International Publishing, 2018. http://dx.doi.org/10.1007/978-3-319-70344-2_15.

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Dow, Sheila C. "Liquidity Preference in International Finance: The Case of Developing Countries." In Post-Keynesian Economic Theory, 1–15. Boston, MA: Springer US, 1995. http://dx.doi.org/10.1007/978-1-4615-2331-4_1.

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Le Riche, Antoine, and Francesco Magris. "Equilibrium Dynamics in a Two-Sector OLG Model with Liquidity Constraint." In Studies in Economic Theory, 147–74. Cham: Springer International Publishing, 2016. http://dx.doi.org/10.1007/978-3-319-44076-7_7.

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Tily, Geoff. "The Theory of Liquidity Preference and Debt-Management Policy." In Keynes's General Theory, the Rate of Interest and 'Keynesian' Economics, 183–225. London: Palgrave Macmillan UK, 2007. http://dx.doi.org/10.1057/9780230801370_7.

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Levine, Ross. "Stock Market Liquidity and Economic Growth: Theory and Evidence." In Finance, Research, Education and Growth, 3–24. London: Palgrave Macmillan UK, 2003. http://dx.doi.org/10.1057/9781403920232_1.

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Çevik, Ümit, and Belgin Yakışan Mutlu. "Liquidity Steps: Policy Actions Taken by Central Banks During Coronavirus Pandemic." In Accounting, Finance, Sustainability, Governance & Fraud: Theory and Application, 205–20. Singapore: Springer Singapore, 2022. http://dx.doi.org/10.1007/978-981-16-8024-3_10.

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Conference papers on the topic "Theory of liquidity"

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Boyan Liu and Zhebing Wang. "Corporate governance and liquidity management." In 2010 3rd International Conference on Advanced Computer Theory and Engineering (ICACTE 2010). IEEE, 2010. http://dx.doi.org/10.1109/icacte.2010.5579302.

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Bal, Hakan. "Determinants of Capital Structure in the Construction Companies across Europe and Central Asia Region." In International Conference on Eurasian Economies. Eurasian Economists Association, 2020. http://dx.doi.org/10.36880/c12.02465.

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This study examines the effects of asset tangibility, profitability, size and liquidity on capital structure (debt leverage) across the construction companies operating in in Europe and Central Asia region using the data between 1993 and 2019. The study documents that the capital structure and other financial ratios under study differ across countries, even in the same industry. Book leverage is found to be significantly negatively related to asset tangibility, profitability and liquidity in accordance with pecking order theory. In particular, fixed ratio has a negative effect on debt ratio in Russia and Romania, but no effect in other countries under study. The effect of size disappears when time dummy variables are introduced.
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Kuzu, Serdar. "The Effects of the Illiquidity Premium on Security Returns and its Importantance for Eurasia." In International Conference on Eurasian Economies. Eurasian Economists Association, 2011. http://dx.doi.org/10.36880/c02.00269.

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This study investigates the illiquidity premium, which has major impact on Eurasian economies, and its term structure. For this aim, The Germany which is very important for Europa and Asia countries is investigated. In this study, the effects of the term structure of the illiquidity premium on government and corporate bonds and “the return of securities – illiquidity premium – expectation theory relationship” are investigated through various parameters and formulations. Consequently, the study is used to Kempf, Korn and Uhrig-Homburg’ study, which aims to investigate relations between German public sector’s bonds and private sector’s bonds and it was realized 2009. It is found that illiquidity premium varies in short, medium and long terms depending upon different factors and the curve that connects illiquidity premiums with different terms is a U shaped curve. Studies that use traditional methods in asset pricing evaluate the illiquidity premium as a systematic risk criteria. But, illiquidity is a risk factor that should be investigated alone instead of be investigated with all of the risk factors. Financial market makers aim to make arrangements that remove the problems arising from the level of liquidity, in other words increase the level of liquidity, and contribute to the formation of efficient price.Further studies in this field will be very important in the development process of corporate bonds market with the decrease of interest rates in international markets and the issue of new corporate bonds in developing countries recently.
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Pessanha Barreto, Iury, and Saulo Jardim de Araujo. "Financial Analysis: A Study on the Liquidity and Indebtedness of Brazilian Companies Listed on the Bovespa Index in the Period of Social Isolation Caused by Covid-19." In 7th International Congress on Scientific Knowledge. Perspectivas Online: Humanas e Sociais Aplicadas, 2021. http://dx.doi.org/10.25242/8876113220212362.

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The present work aimed to carry out a study on the variation of liquidity and indebtedness of companies listed on the Bovespa Index of B3, for the four quarters of 2020, a period in which the world economy went through instabilities and imbalances due to the pandemic of Covid-19. Financial management is essential for companies, as without it managers can make inefficient decisions, which can negatively impact the company and its finances. The absence of good financial management can cause negative impacts on the company, especially in times of crisis, such as the period of the first year of the COVID-19 pandemic. Therefore, for a business to have good results, it is necessary to create strategies to manage the company's finances, including periodic liquidity and indebtedness analysis. Thus, the Current Liquidity Ratio (ILC) and the Cash Ratio(CI) were used to determine the liquidity of companies and their transformations for the period analyzed. For indebtedness, we sought to analyze the Liabilities/Assets Index and the Third-Party Capital/Equity Index. Data were collected from the Standardized Financial Statements (DFP) and Quarterly Information (ITR) available on the B3 page. In the analysis of this work, companies from the financial sector were excluded due to the incompatibility of accounting standards and the methodology addressed in the work. It was verified in the results that, on average, companies underwent a substantial increase in liquidity in 2020, mainly in the second quarter, in which there was an average increase, among the companies analyzed, of 33.18% in the Cash ratio. The Industrial Goods, Oil, Gas and Biofuels and Public Utilities sector had the greatest increases in liquidity in the period. In terms of indebtedness, it could be seen that there was an increase in the participation of third-party capital, but less significant than the increase in liquidity of companies. This suggests that liquidity was financed by reallocation of company assets and policies aimed at exchanging the companies' current liabilities for non-current liabilities. It is concluded that in periods of uncertainty, such as the COVID-19 Pandemic, one of the priorities of companies is in fact to strengthen cash through asset reallocation, liability refinancing and contracting of credit lines.
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Ahmeti, Yllka, Ardi Ahmeti, and Albina Kalimashi. "IMPACT OF LIQUIDITY MANAGEMENT ON COMMERCIAL BANKS PROFITABILITY IN KOSOVO DURING THE PERIOD 2011-2019." In 5th International Scientific Conference – EMAN 2021 – Economics and Management: How to Cope With Disrupted Times. Association of Economists and Managers of the Balkans, Belgrade, Serbia, 2021. http://dx.doi.org/10.31410/eman.2021.103.

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Liquidity management and its impact on the profitability of commercial banks are two issues of particular importance in the further development of the business and at the same time two sources of concern for financial managers. For this reason, this study aims to determine the impact of changes in liquidity levels on the profitability of commercial banks in Kosovo. The study is based on secondary data for nine commercial banks in Kosovo over 9 years, respectively for the period from 2011 to 2019, taken from the audited annual statements of these financial institutions. The study measures the relationship between liquidity management and profitability and its impact on profitability. In order to process the data, regression analysis and correlation were used, while the findings determine whether there is a significant relationship between liquidity management and profitability in commercial banks in Kosovo. The current ratio, the quick ratio, the cash ratio and the capital adequacy ratio have been taken as liquidity indicators, while return on assets and return on equity are considered as profitability indicators.
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6

Wang, Linan, Xin Jin, and Jingrong Li. "The Contradiction between Macro-liquidity and Internal Liquidity of the Corporates and Their Corresponding Early-warning System." In 2017 2nd International Seminar on Education Innovation and Economic Management (SEIEM 2017). Paris, France: Atlantis Press, 2018. http://dx.doi.org/10.2991/seiem-17.2018.37.

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7

González-de Julián, Silvia, Fernando Polo-Garrido, Isabel Barrachina-Martinez, and David Vivas-Consuelo. "PROFITABILITY ANALYSIS OF PUBLIC-PRIVATE PARTNERSHIP IN HEALTHCARE DELIVERY IN SPAIN." In Business and Management 2018. VGTU Technika, 2018. http://dx.doi.org/10.3846/bm.2018.52.

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In the Valencian Community (Spain) there are 5 health districts managed by public-private partnerships. They are the so-called Alzira model, where the concessionaire builds and maintains the hospital facilities and provides health care services. The purpose of this paper is to address problems raised in the calculation of the limiting clause of profitability and to develop a financial statement analysis in order to assess profitability, solvency and liquidity. Results indicate that all concessionaires show very high debt-to-assets ratio, low liquidity, ROA fluctuates between 2.45% and 12.42%, and the IRR varies between 3.47% and 13.15%. Despite this, four of five concessionaries exceed the limiting clause using an “ad hoc” method as proxy of “cash flows”.
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Nurmet, Maire, Katrin Lemsalu, and Juri Lehtsaar. "Working capital in Estonian agricultural companies: analysis by size." In 22nd International Scientific Conference. “Economic Science for Rural Development 2021”. Latvia University of Life Sciences and Technologies. Faculty of Economics and Social Development, 2021. http://dx.doi.org/10.22616/esrd.2021.55.050.

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The paper examines the working capital indicators to find out the differences between larger and smaller Estonian agricultural companies. In the task of working capital management, a balance between profitability and liquidity is under investigation. A higher level of current assets ensures higher liquidity, but reduces the profitability. The share of inventories in current assets is relatively high in agricultural companies, and can lead to liquidity problems in adverse circumstances. Low levels of current assets can lead to business interruptions, as insufficient stocks lead to delays in the production process, which in turn is amplified in yields or other outputs. The number of employees is used to distinguish the size of the company. The results show that the smallest agricultural companies have higher liquidity and relatively larger share of highly liquid current assets. Larger agricultural companies maintain a higher level of inventory and have a longer inventory turnover period. Smaller companies have a slightly higher share of loans in current liabilities, so they have to maintain a larger financial buffer. The cash conversion cycle is longer for the smallest and the largest agricultural companies while medium-sized companies have a shorter cash conversion cycle. Smaller companies have the longest receivables turnover, showing that they enable longer payment periods for buyers or may have difficulties collecting receivables from the production sold. Having low market power and long receivables turnover, they have relatively higher need for working capital.
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Grujić, Miloš, and Perica Rajčević. "EXAMINATION OF CRISIS RESPONSE PREPAREDNESS IN LISTED JOINT-STOCK COMPANIES IN THE REGION." In Economic and Business Trends Shaping the Future. Ss Cyril and Methodius University, Faculty of Economics-Skopje, 2020. http://dx.doi.org/10.47063/ebtsf.2020.0009.

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As a consequence of the measures taken to remedy the medical problem, there may be a bigger one economically, all over the world. The paper analyzes the consequences of the current economic crisis caused by the COVID-19 virus pandemic. The key economic consequences of the pandemic for companies but also for the economy have been identified. Entrepreneurs, small and medium enterprises, with the smallest liquidity stocks, are expected to feel the greatest consequences of the economic crisis. Taught by the failures of the Great Depression and the relative successes of the crisis in 2008, governments have already announced and launched massive programs to help businesses. At this moment, the supply of liquidity of deficient economic entities is a critical issue. The previous crisis showed that governments have tried and tested mechanisms for supplying liquidity to the financial sector, but transmission mechanisms to end-users were the Achilles' heel of the mechanism. We believe that success in finding adequate channels for the transfer of liquidity to economic entities with a liquidity deficit will be crucial for the character, length, and depth of the crisis. The paper offers a number of proposals for key necessary measures at the state level to overcome the observed economic disruptions. One of them is the request of the regulator, the other is the reaction of the state, but an important part must also come from the company. In addition, the research conducted by the questionnaire method for joint-stock companies from the Western Balkans resulted in a set of measures that serve as a basis for determining the gap in the required and current set of measures taken at the level of an individual organization.The aim of this paper is to point out that in the short term it is possible to stabilize the system through the application of macroeconomic and microeconomic measures.
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Suhendra, Euphrasia Susy. "Factors Impacting Capital Structure in Indonesian Food and Beverage Companies." In International Conference on Eurasian Economies. Eurasian Economists Association, 2014. http://dx.doi.org/10.36880/c05.00896.

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Capital structure is directly related with the financial decision of the company. Capital structure theories seek to explain why businesses choose different mixes of debt and equity to finance their operations. The concept is generally described as the combination of debt & equity that make the total capital of firms. It usually comprises all the sources of finance that a company is utilizing to finance its operations. The aim of this study is to know the major determinants of capital structure, the factors that affect capital structure. This study has used the data from 17 food and beverages Indonesian firms over a time period of 3 years (20010-2012). Debt to equity ratio (DER) is a dependent variable which is defined as the ratio of total debt to equity of the observed company, and there are five independent variables, which are liquidity, profitability, asset tangibility, firm size, and firm growth. As a result of this study, there are two variables that have a significant effect toward Capital Structure in sector of Food and Beverages Companies; they are Liquidity and Asset Structure with significant negative correlation. The other three remaining independent variables which are Profitability, Firm Size, and Asset Growth do not have significant effect toward the Capital Structure in sector of Food and Beverages Company.
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Reports on the topic "Theory of liquidity"

1

Diamond, Douglas, and Raghuram Rajan. Liquidity Risk, Liquidity Creation and Financial Fragility: A Theory of Banking. Cambridge, MA: National Bureau of Economic Research, December 1999. http://dx.doi.org/10.3386/w7430.

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Tella, Sebastian Di. A Neoclassical Theory of Liquidity Traps. Cambridge, MA: National Bureau of Economic Research, January 2018. http://dx.doi.org/10.3386/w24205.

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Vayanos, Dimitri, and Jiang Wang. Market Liquidity -- Theory and Empirical Evidence. Cambridge, MA: National Bureau of Economic Research, July 2012. http://dx.doi.org/10.3386/w18251.

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Chang, Roberto, and Andres Velasco. Liquidity Crises in Emerging Markets: Theory and Policy. Cambridge, MA: National Bureau of Economic Research, July 1999. http://dx.doi.org/10.3386/w7272.

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Roubini, Nouriel, and Vittorio Grilli. Liquidity Models in Open Economies: Theory and Empirical Evidence. Cambridge, MA: National Bureau of Economic Research, October 1995. http://dx.doi.org/10.3386/w5313.

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Acharya, Viral, Heitor Almeida, Filippo Ippolito, and Ander Perez. Credit Lines as Monitored Liquidity Insurance: Theory and Evidence. Cambridge, MA: National Bureau of Economic Research, March 2013. http://dx.doi.org/10.3386/w18892.

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Farhi, Emmanuel, Mikhail Golosov, and Aleh Tsyvinski. A Theory of Liquidity and Regulation of Financial Intermediation. Cambridge, MA: National Bureau of Economic Research, March 2007. http://dx.doi.org/10.3386/w12959.

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Vigdor, Jacob. Liquidity Constraints and Housing Prices: Theory and Evidence from the VA Mortgage. Cambridge, MA: National Bureau of Economic Research, July 2004. http://dx.doi.org/10.3386/w10611.

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Chah, Eun Young, Valerie Ramey, and Ross Starr. Liquidity Constraints and Intertemporal Consumer Optimization: Theory and Evidence From Durable Goods. Cambridge, MA: National Bureau of Economic Research, November 1991. http://dx.doi.org/10.3386/w3907.

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Waller, Christopher J., and Aleksander Berentsen. Liquidity Premiums on Government Debt and the Fiscal Theory of the Price Level. Federal Reserve Bank of St. Louis, 2017. http://dx.doi.org/10.20955/wp.2017.008.

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